Ipswich boss Joe Royle has confirmed that he is after Lee
"Our chairman is talking to Cardiff's chairman about Alan coming to the Club and we are close but nothing is definite yet," Joe told the club website.
"It won't happen before the weekend but we are hopeful for next week. There will be a fee involved and it will be a permanent deal."
Lee has spent most of the season on the bench and has failed to produce enough goals to justify the reported £850,000 fee City paid to Rotherham.