Sky Sports report Blues midfielder Chong is having a medical at Luton Town
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The 23-year-old former Manchester United youngster had been rumoured to be heading to Kenilworth Road this summer, with Sky Sports now reporting personal terms have been agreed, with the fee set at around £4m as well.
Chong came through the ranks at Dutch side Feyenoord, before moving to Manchester United at the age of 16, making 16 appearances for the Red Devils’ first team, including five substitute outings in the top flight.
He then moved to the Blues last summer after an impressive loan spell, which included a magnificent display in City's 5-0 win at Luton.
With Birmingham shelling out 1.5m to sign Chong permanently, he featured 41 times last term, scoring four goals, but wasn’t on the club’s pre-season tour of Spain.
Boss John Eustace hadn't wanted Chong to leave, telling the Birmingham Mail about that possibility Eustace said: “I’d be disappointed to lose him.
“We saw Tahith’s development throughout the season.
“In the year that he’s been with us you can see that his performances were getting better and better.
“He matured as a player, to lose him wouldn’t be ideal, but it’s part of what we do.
“We want to make players better and if we are not successful moving up the league, we want the players to have the opportunity to get into the Premier League.
"If that happens then great, but hopefully we can keep him.”