Peter Lovenkrands has become Lee Clark's first signing as Birmingham boss, subject to a medical.
The 32-year-old Danish forward has agreed personal terms on his Bosman free transfer to St Andrew's and is due to report for training on Monday as Blues kickstart their pre-season preparations under Clark, who took the reins from Chris Hughton towards the end of June.
Lovenkrands' move has been made possible after City's transfer embargo was finally lifted by the Football League last Wednesday, having been placed on the club in March for not filing their 2010/11 accounts on time.
The Denmark international, a target of both previous Birmingham bosses Hughton and Alex McLeish, was released by Newcastle earlier this summer having scored 26 goals in 85 appearances for the Magpies over two spells since 2009.
He first moved to Britain in 2000 when he joined Rangers, ending a six-year spell north of the border with a switch to German side Schalke, whom he represented for three seasons before linking up with Newcastle.
Elsewhere, Birmingham have announced leisure, entertainment and lifestyle provider EZE Group as the club's official shirt sponsor for the forthcoming npower Championship campaign.