Birmingham have confirmed they are in talks with the City Council about building a new stadium in Saltley, near their current home of St Andrews.
The planned new site at Saltley is near City's current St Andrews home
Blues are willing to pay £20m towards the project, but are also looking for external financial aid.
City managing director Karren Brady said: "Talks continue with the council, and we are in the process of appointing a master planner.
"We have to have auxiliaries in place as we don't want to bankrupt the club."
The idea has met with an encouraging reaction from the manager Alex McLeish who is excited by the plans but is also mindful that the club needs to keep its priorities in check.
"We need to learn to walk before we can run," he told BBC WM.
A new stadium would be exciting for the fans, and we'd all welcome it.
"Let's get the team first but if a stadium can come along in the process of building a team
for the future then fine.
"We want to get a side that's recognised as a Premier League team and that's where I want to take the club.
"A new stadium would be exciting for the fans, and we'd all welcome it."