Manchester City manager Roberto Mancini is willing to let Wales striker Craig Bellamy go out on loan to Celtic.
The Glasgow club are interested in landing the 32-year-old, who spent last season on loan at Cardiff City and
had a loan spell at Celtic in 2005.
Boss Neil Lennon said: "There have been conversations between both clubs."
And Mancini told BBC Sport: "If Celtic want Craig... he can go. Craig is a good striker and he can play at Celtic, because they're an important team."
City and Celtic were playing in the same pre-season tournament in Dublin, after which Lennon talked of the possible addition of Bellamy.
Celtic manager Neil Lennon
“Hopefully there will be more to report at the end of the week”
"I didn't speak with City, but the two clubs have been working on that in the background," the Bhoys manager added.
"Hopefully there will be more to report at the end of the week."
Bellamy, who could not help hometown club Cardiff win promotion to the Premier League last season, has one year remaining on his Manchester City contract.
Before the end of last season,
Bellamy insisted he would like to remain at Cardiff,
even if they still remained in the Championship.