The Sky Blues insist Rovers are the only club in with a chance of signing their highly-rated England marksman.

Dublin looked well on his way to Blackburn on Tuesday when Coventry agreed to a £6.75m transfer fee.

But Villa manager John Gregory then contacted City with a bid to match Blackburn's offer.

And Newcastle boss Ruud Gullit is also interested in making Dublin his first major signing at St James' Park.

Gregory said: "Yes, we have contacted Coventry City with an inquiry about Dion Dublin and we will be formally faxing our bid.

"We are now awaiting permission to speak to the player and hopefully persuade him to join us."

But Coventry chairman Bryan Richardson confirmed that Ewood Park remains the most likely destination for Dublin:

"We have a closed bid with Blackburn and no-one else can come in," he said.

Sutton stays, insist Rovers

If Dublin does decide to move to Ewood Park, Blackburn have vowed to keep first-choice striker Chris Sutton at Ewood Park.

Hodgson: Denies Sutton is on his way from Ewood Park

Chief executive John Williams said: "Our move for Dion Dublin is about strengthening our squad not about replacing one player for another.

"Chris Sutton is not for sale."

Williams said the club remained optimistic about signing Dublin.

"We had a very positive meeting and made an offer which we believe was well received.

"Roy Hodgson had a conversation with Dion about football matters and likewise, Roy felt that to be extremely positive."

Brighter outlook for Sky Blues

Coventry have reluctantly agreed to sell Dublin because he has a clause in his contract allowing him to discuss substantial bids with prospective buyers.

But the Sky Blues have already targeted the man to replace their star player.

City chairman Bryan Richardson said: "We have to be clear about obligations to the club and that is if you sell somebody such as Dion Dublin you have to bring a player in who is available, who you can afford, and that you really think is the one that you want.

"In this particular case we think we've achieved those three items with one player and certainly it is our intention to bring that player to a conclusion within the next few days.

"Dion has it in his contract that after a certain amount of money we would inform him that there was a bid. Then it's entirely up to him and our hands are tied. Now Dion has exercised that option and he's going to speak to Blackburn.

"We've done our best to keep him here - he's on a marvellous contract - but it's out of my hands now. We would obviously like to keep him but, if he wants to go, there's nothing we can do about it."