"Hopefully, he will be the first of several high-profile signings that we will be making this summer."
Heskey, who flew out to New York yesterday for a short break before joining up with the England squad, said he was looking forward to getting back among the goals.
"I think Birmingham is a progressive and ambitious club and very much going in the right direction," he told the club's website, www.bcfc.com.
"But they are also building within a sensible framework without throwing money around and jeopardising the future of the club.
"I am keen to play as an out-and-out striker, which I haven't done since my second season at Liverpool, and Steve has made it clear that is the role that he sees for me.
"I am also looking forward to linking up with Mikael Forssell. I have been very impressed with what I have seen of him and I think we can create an effective partnership."
Released Leicester midfielder Muzzy Izzet is another expected to sign for the St Andrews outfit.