The 24-year-old former Roma player has dropped to fifth choice at Spurs but is yet to agree personal terms at St Andrews.
A statement on the Birmingham website read: "Mido had been rumoured in the media to be joining the club on a season-long loan but Blues can confirm that they are looking to sign the former Ajax, Marseille and Roma hotshot on a permanent deal."
Mido would be Blues' seventh permanent signing of the summer since winning promotion back to the Premier League at the first attempt.
The striker was very close to moving to Manchester City during the January transfer window but could now be heading to St Andrews, with reports linking compatriot and Spurs club-mate Hossam Ghaly with a move to the Midlands club too.
Mido initially joined Spurs on an 18-month loan from Roma before signing for £4.5million in August 2006.
He started only seven league games for the north Londoners after making his move permanent, making five further appearances as a substitute and scoring one goal.