Blackwell, who himself will leave Luton next month, told Sky Sports News today that "his agent's speaking to two clubs", and a move could go through after the Hatters' FA Cup match at Liverpool tomorrow.
Blackwell is working with the club's administrator through the January transfer window as the Hatters' top players are sold to raise funds.
At the age of 22, Luton-born Brill is the number 1 at Kenilworth Road. Tomorrow's game at Anfield will be his 50th for the club in all competitions. He also made 8 appearances on loan at Gillingham a year ago.
City require a keeper to compete with Boaz Myhill due to the current unavailability of Matt Duke.