The popular Irish man had a difficult time settling in at Cardiff and scored just ten goals for the South Wales club before being sold to Ipswish. Lee had an outstanding season for the Portman Road club last time out scoring 17 goals and scoring many more and that has attracted the interest of other clubs.
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Coventry are reported to have had a 400k bid rejected and the Hull Daily Mail is reporting that Ipswich have agreed a 500k with the East Yorkshire and a deal could go ahead within 48 hours with Lee set to earn £8000 a week.
City's manager, Phil Brown told the Hull Daily Mail: "We have made an enquiry for the player but there hasn't been an official bid placed with Ipswich yet. I am not in a position to say anything more at this stage but he's a player that I like."