Yeates played 51 times for Parkinson at Colchester last season while on loan from Spurs, scoring 6 goals. He can play on the right wing or up front. Other Championship clubs are also in the hunt for the Irishman, but Parkinson's previous involvement could give City the edge.
That could spell the end for City's longest serving player, Stuart Green. The club have already publicly announced that the 25-year-old is available for transfer, and if Yeates joins Ryan France in competing for a place on the right flank, Green may accept that it is time to go.
Meanwhile, Crystal Palace boss Peter Taylor is reportedly hoping to buy City's top scorer for the last two seasons, left winger Stuart Elliott. City would be expecting an offer similar to that received for Leon Cort, but much could depend on if the move is right spiritually for Elliott, a born again Christian.