Wolves have agreed a £7million fee with Birmingham for defender Roger Johnson, who will join the club subject to a medical and personal terms.
Johnson has been tipped to leave Birmingham following the club's relegation to the Championship and is now discussing a move to their local rivals.
The 28-year-old was an ever present in the top flight over the past two seasons and established himself as one of the Premier League's most reliable centre-halves.
His agent revealed last month that Blues were prepared to let Johnson go and a switch to Molineux is now in the pipeline.
Birmingham were rumoured to want £10million for the former Cardiff defender, but a £7million offer is now thought to have been accepted.
The deal would equal the club record Wolves spent to sign Scotland striker Steven Fletcher from Burnley 12 months ago.
McCarthy has been looking to improve his defensive options and tried to bring in Matt Mills earlier in the summer.
However, Mills joined Leicester City from Reading last week and McCarthy will hope he can now convince Johnson to link up with Wolves.
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