James McFadden's penalty gave Birmingham three vital points in their Coca-Cola Championship clash with Ipswich.

McFadden blasted Alex McLeish's side into the lead after referee Iain Williamson penalised Moritz Volz for a handball and they held on to once again move level on points with Reading in the automatic promotion picture.

Birmingham saw Reading leapfrog them into second place last weekend but were the sharper side throughout as Jim Magilton's struggles continue.

Ivan Campo won a surprise recall for his first appearance in over two months in the Ipswich back four and the former Bolton and Real Madrid man was instantly involved.

Intricate passing in the Birmingham midfield ended with Cameron Jerome being played in down the left-hand side of the penalty area and his powerful shot looked to be heading for the target until Campo turned it around the post with a sliding block.

Liam Ridgewell then produced an excellent challenge of his own to deny Danny Haynes at the other end before Alan Quinn sent a powerful strike just wide as Magilton's side stepped up the pressure.

The impressive Haynes then fashioned a chance for Jonathan Stead but his shot was blocked by Radhi Jaidi

before Haynes was forced off with an injury.

Jerome was ploughing a lone furrow in attack for Alex McLeish's side and again created a moment of panic when he turned and lashed a shot over from the edge of the area before the Blues took the lead in the 39th minute.

Kemy Agustien's cross struck Volz and Williamson immediately pointed to the spot.

Scotland international McFadden made no mistake and planted his strike into the bottom left corner.

Jon Walters had come off the bench to replace Haynes and went close at the start of the second half but his low shot sailed a few yards wide before fellow substitute Darren Ambrose went close.

Ambrose cleverly placed his free-kick under the wall but Birmingham goalkeeper Maik Taylor made a sprawling stop.

The visitors began to control possession in midfield and the impressive Agustien came close to grabbing a second with 15 minutes remaining.

Franck Queudrue played the ball square from the left flank and Agustien drove into the area and smashed a left-footed strike toward the top corner but Richard Wright produced a fine save to turn the ball away.

That proved to be the final moment of quality as McLeish's side moved back onto the tails of Reading and leaders Wolves.

Teams:

Ipswich Richard Wright, Volz (Counago 75), Campo, McAuley, Thatcher, Norris, Miller, Quinn (Ambrose 59),Haynes (Walters 28), Lisbie, Stead.

Subs Not Used: Supple, Balkestein.

Booked: Quinn, Volz, Miller.

Birmingham Maik Taylor, Parnaby, Jaidi, Queudrue (Hunt 65), Murphy, McFadden (Bent 69), Carsley, Ridgewell, Johnson,Agustien, Jerome.

Subs Not Used: Doyle, Phillips, Owusu-Abeyie.

Booked: Parnaby, Ridgewell.

Goals: McFadden 39 pen.

Att: 23,536

Ref: Iain Williamson (Berkshire).