Brown spent the second-half of last season on-loan at Huddersfield and he played a crucial part in helping the Terriers earn promotion to the Premier League via the play-offs, the Yorkshire outfit beating Reading on penalties in the final at Wembley.
The England Under-20 international made 18 Championship appearances, scoring four goals, and his impressive performances did not go unnoticed by manager David Wagner.
Town are now eager to wrap up a permanent deal for the 20-year-old and are believed to closing in on an £8million deal for the Peterborough-born star.
However, if the Blues were to change their minds over selling Brown for good it is said the defending Premier League champions would be willing to entertain a season-long loan move to the John Smith's Stadium instead.
Huddersfield are also said to be showing an interest in Derby County's Thomas Ince and Manchester City winger Patrick Roberts, who impressed on loan at Celtic last season.