Farnan was among those in the running to take control at Leeds United prior to Massimo Cellino’s successful purchase of the club.
He has now turned his attention to another second tier side, with Birmingham looking for fresh investment.
The Blues revealed in May that they were in ‘advanced discussions’ with a British consortium, but no agreement has been reached as yet.
Farnan hopes his proposal will help to force the issue, with the former Manchester United director of the opinion that there is considerable potential at St Andrew’s waiting to be unlocked.
He told Sky Sports: “Birmingham City are a major club with a huge catchment area.”
While Farnan has previously worked at the top of the Premier League with United, Pearson has spent time as chairman of Derby County and head of football operations at Hull City.
He is currently the owner of Rugby League side Hull FC.