However, the Cottagers are set to make the first move within the next 48hrs, which could trigger a bidding war.
Birmingham, are believed to be willing to sell their star man in a bid to address financial difficulties.
Butland is said to be happy to move on, so long as he is guaranteed first-team football, a stance that could play into Fulham’s hands.
With current stopper Mark Schwarzer now 40-year-of-age and back-up stopper David Stockdale failing to convince, the number one position at the club would appear to be up for grabs, which may tempt Butland to reject interest from more illustrious teams.
Southampton had a £6m approach knocked back over the summer, but it is believed that a similar fee may be accepted this month by the Championship side.
His manager Lee Clark believes that the 19-year-old has what it takes to play in the top-tier, but has warned the player to seek first=team football:
“Even if he goes to the biggest club in the world, Manchester United, and he’s their No. 2, it won’t benefit his career at all.
“He is good enough to go to the Premier League and be a No. 1 without a shadow of a doubt – but he has to make sure that’s what happens.
“It would be a massive backwards step if he goes to a Premier League club and he is the No. 2.”