Birmingham boss Alex McLeish is keen to bring in two new strikers in January.
City have now told an agent to open talks with Schalke over a move for the 27-year-old striker, who is out of contract next summer.
Reports says the Brazil-born striker is available for a knockdown fee of around £3million.
Kuranyi would demand a salary of between £70,000-£50,000-a-week at Birmingham.
