Nottingham Forest are set to sign Manchester United midfielder Nick Powell on loan until the end of the season.
The former Crewe youngster has made three appearances for the Premier League side since returning from injury but is out of contract in the summer and seeking regular football.
Preston North End had hoped to sign Powell but Forest have stolen a march on their division rivals and look to benefit from his Champions league experience.
Elsewhere, Leeds , QPR and Derby County are all said to be keen on taking Aston Villa star Jack Grealish on loan.
The promising youngster has fallen out of favour under Remi Garde and has struggled to continue his form from last season.
His off field behaviour has concerned his boss at Villa Park, but only a few months ago was being touted as an England squad member for Euro 2016 and regular football in the Championship could be attractive for both parties.
Sheffield Wednesday could turn to Brentford's Alan Judge to provide attacking impetus after losing out to Derby in the race for Nick Blackman.
Blackman joined Derby from Reading on Wednesday, spurning interest from the Owls who had talked to him earlier in the week.
As well as Judge, the Yorkshire club are keen to add a striker and defender to their ranks before the end of the month.
Crystal Palace have joined Manchester United in the race for Fulham youngster Moussa Dembele - according to the Mirror.
The 19-year-old is out of contract in the summer and attracting interest from home and abroad.
Speaking of Palace, Alan Pardew is also said to be chasing QPR defender Steven Caulker .
The defender joined Southampton on loan at the start of the season but has only made one Premier League appearance.
Bournemouth and Palace are interested in taking the defender, but Southampton would have to agree to ending the deal early. Pardew is also believed to be chasing Charlie Austin from the Rs in what could be a busy window of business for the Eagles.
While Middlesbrough could look to make January additions if the price is right, they have poured cold water on reports of a bid for Fulham's Ross McCormack.
The midfielder has been monitored by senior figures on Teesside, but they will not be making a move to bring him to the Riverside this January.
Arsenal defender Serge Gnabry could be on his way to Brighton until the end of the season.
The Seagulls enquired about his availability after seeing him return to the Emirates Stadium from his temporary deal at West Brom six months early.
Arsene Wenger chose to recall the winger after he made just one Premier League appearance under Tony Pulis, and Brighton are keen to reignite their promotion charge.
MK Dons have lost Sam Gallagher after the 20-year-old was recalled from his loan early by parent club Southampton.
The deal was supposed to run until the end of the season but the midfielder has now returned to the Saints after making 15 appearances for Karl Robinson's men.
