Birmingham City could become the latest Barclays Premier League club to fall into the hands of foreign owners. Discussions have taken place between the Birmingham board and an unnamed businessman believed to be based in the Far East.

However, despite reports that a £70 million bid had been made and an agreement had been reached, it is understood that no firm offer has been received at St Andrew’s. A statement confirming the interest of a potential buyer was released to the Stock Exchange by the club this morning, saying: "Such discussions are at a very preliminary stage and the directors note that there is no certainty that a transaction will result from the approach.”

“Conversations have taken place, but that’s as far as it has gone at the moment,” a source close to the club said yesterday. “There is no firm offer. As yet, there is nothing concrete.”

David Sullivan, the co-owner and plc chairman, said: “Under Stock Exchange rules, we cannot comment on these things. The club may or may not comment in response to this next week. If we do, it will be via the Stock Exchange.”

Birmingham won promotion back to the Premiership, at the first attempt, when they finished runners-up to Sunderland in the Coca-Cola Championship last season. Such a swift return to the top flight has increased their profile and made them attractive to wealthy investors.

Sullivan has admitted to growing disillusioned with football, especially the huge drain of players’ wages, and that he would be willing to sell. David Gold, the club chairman, had considered buying him out, but would only sell – along with Ralph Gold, his brother and fellow co-owner – if it was “in the best interests of the club”.

Two weeks ago, though, David Gold did concede that Birmingham was ripe for a takeover from abroad. “It wouldn’t surprise me at all if the club were approached by foreign investors,” he said. “What’s happening in the Premier League is that, as the super clubs are being taken over, Birmingham will start to become the next iconic club.

“It bears the name of one of the greatest cities in Europe and, with the likes of Manchester United and Newcastle United having gone, you will find that, slowly, Birmingham is at the top of the pile. If I was an American billionaire, I cannot think who I would want other than Birmingham City.

“I don’t think foreign ownership is bad for football. It adds a different dimension. There’s no evidence that foreign owners are raping and pillaging the clubs, I don’t see them doing any harm. They’re not coming into football to make money. It’s all about the excitement of the Premier League.”

Chelsea, Manchester United, Liverpool, West Ham United, Aston Villa, Fulham, Portsmouth and Sunderland are in foreign ownership. Thaksin Shinawatra, the former Prime Minister of Thailand, is attempting to take over at Manchester City.