BRISTOL City will face stiff competition from the Premier League for the signature of England goalkeeper David James.

The Championship club have made an audacious bid to sign the 39-year-old stopper, who is a free agent after being released by crisis club Portsmouth.

City manager Steve Coppell wants James at Ashton Gate next season and has sent the goalkeeper's agent details of a proposed one-year contract.

But the Robins are involved in a three-way fight to sign the former Aston Villa and Liverpool keeper after Premier League rivals Fulham and Sunderland declared their interest in James, who featured in three of England's four games at the World Cup finals in South Africa.

Both have offered James a 12-month contract and are in a position to offer considerably more than City in terms of wages.

But the Championship side are hoping James' wish to remain in the West Country – he lives in Exeter – will persuade him to drop down a division.

Fulham are resigned to losing Australia keeper Mark Schwarzer to Arsenal, who are expected to follow up an initial bid of £2 million with an improved offer as they prepare to bid farewell to Osasuna-bound Manuel Almunia.

The Cottagers are lining up James as a potential replacement should Schwarzer move on.

Sunderland boss Steve Bruce is in the market for a short-term replacement for injured Scotland international Craig Gordon, who is expected to be sidelined until at least the end of October after fracturing an arm in training, and has expressed an interest in James.

James pulled out of talks with Scottish Premier League giants Celtic earlier this week and is thought to want to work closer to his Devon home.

Although Robins boss Coppell declined to discuss his interest in James, a City source confirmed the club's approach, saying: "There has been contact at agent level.

"We have yet to speak to David James himself and things are still at agent level for now. But we have heard that he wants to remain in the West Country and we are waiting for his agent to come back to us with an answer.

"David James is a free agent and is sure to have a lot of offers but, if location is more important to him than money and status, then we feel we are in with a chance."

But City's hopes of signing Jon Stead from Championship rivals Ipswich Town have been dashed after the 27-year-old striker rejected a move to Ashton Gate. He was last night reported to be in talks with Premier League newcomers Blackpool.

Although City had agreed a fee of £225,000 for the former Blackburn, Sunderland and Sheffield United forward, Stead's wage demands proved a major stumbling block and his proposed move finally fell through last night.

City chief executive Colin Sexstone said: "That's football and when one door shuts, another usually opens and we will just have to continue our search elsewhere."

Meanwhile, City are close to agreeing a deal with Bolton Wanderers defender Nicky Hunt. The 26-year-old right-back is available on a free transfer and Bolton have agreed to pay up the remaining year of his contract.

Hunt was in Bristol for talks with Coppell and Sexstone on Tuesday and is expected to return tomorrow to complete his switch from the Reebok Stadium to Ashton Gate.

The former England Under-21 international has been lined-up as a replacement for Bradley Orr, who should today complete his long-anticipated move to Queens Park Rangers in a deal thought to be worth £500,000. Orr had his medical with QPR yesterday.

Scotland international midfielder Paul Hartley has completed his move to Aberdeen after City terminated his contract with a year to run.

Hartley spent just one season with the Robins, playing 42 games and scoring five goals, and Coppell said: "We would like to wish him well for the future."

● A young Bristol City XI drew 2-2 with Zamaretto League Taunton Town last night.

City went 2-0 down before the impressive Liam Douglas pulled a goal back with a header in the 55th minute and Luke Palmer got the equaliser in the 67th minute.