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West Ham have been eager to sign Keane, 30, on loan but Harry Redknapp said in his press conference on Friday that a move was unlikely as he would only allow the player to leave on a permanent basis.
Avram Grant, though, said that he remained hopeful of a deal.
"We have a few targets we want to bring in," he said. "It's not a secret that I am friends with Harry and I speak with him every couple of days. He (Keane) is a player we want to bring for sure. We are dealing with this."
However, it appears Birmingham have now reached an agreement to pay an initial £4 million for Keane, with the deal potentially rising by £2 million via various add-ons and clauses.
Birmingham have been given permission to hold talks with Keane, but the deal is believed to be very much in its infancy.
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