Birmingham owner Carson Yeung is ready to back manager Alex McLeish in the January transfer window by making a £8million bid for Babel.
The Independent says Liverpool want around £12million for the 23-year-old and will be looking to hold out for more than the £8million Birmingham offer.
“We won’t rule out a marquee signing if there is someone out there who I think can make a huge difference to this team,” McLeish said. “We would try if we could but, again, there has got to be a cut-off point.
“I still don’t think w have to spend £20m or £40m or whatever was quoted at the time. I don’t think there’s any point in bringing who are not as good as what we have – you don’t progress doing that.”