"We have agreed terms in principle with Leeds and are expecting the player down some time today," says Paul of the Canning Town born midfielder - a West Ham fan, whose hero used to be Billy Bonds.
"We need to sit and talk with Lee and hopefully we will then be in a position to take it further, tie up the loose ends and thrash out a contract as soon as possible."
Glenn Roeder is excited by the possibility of bringing 26-year-old Lee in, albeit on a short term deal, and adds: "He is a fantastic midfield player and has got the best years of his career in front of him."
There is also a lot of activity going on behind the scenes with regard to another target, and Paul reveals: "It has obviously been slow - but it is important to get the players we want.
"We are still working on the forward we all know we need at this moment, but again, it has to be the right one.
"I think if we get two transfers of the right quality done that will be it."
As regards the FA Cup fourth round draw taking West Ham to Old Trafford, Paul says: "It brings back memories of a couple of years ago, and we always have a good game against Manchester United.
"We are looking forward to it, we get the chance of a big allocation, and we have a great day out - if we get the result we did last time in the FA Cup."