Davie Weir believes the lack of a scouting network at Rangers is a problem that needs to be solved.
Colchester have signed former Yeovil midfielder Joe Edwards, subject to paperwork.
Birmingham are making no comment on speculation assistant manager Terry McDermott and first-team coach Derek Fazackerley have departed the Sky Bet Championship club.
Local media reports emerged on Monday afternoon suggesting the pair, who form part of manager Lee Clark's backroom team, had left St Andrew's.
A short statement on the club's official website read: "Birmingham City Football Club acknowledges speculation surrounding the positions of employees Terry McDermott and Derek Fazackerley but has no comment to issue on the matter at this moment in time."
Blues, 18th in the Championship, fell to a 2-1 defeat at home to Huddersfield on Saturday - stretching their winless home run to 11 league matches since the start of October.
Former England international McDermott, a three-time European Cup winner with Liverpool as a player, and Fazackerley, who worked alongside Kevin Keegan when he was in charge of England, were part of the backroom set-up at Newcastle during Clark's playing days in the north-east.
McDermott duly became Clark's number two at Huddersfield following the latter's appointment in December 2008, with Fazackerley also joining the Terriers as first-team coach before linking up with Leicester less than two years later.
Clark and McDermott were relieved of their duties by Town in February 2012.
However, Clark reunited the trio when he landed the Birmingham job in June 2012.