Birmingham City managing director Karren Brady is in talks about a new deal for on-loan Argie whiz Mauro Zarate.

The Mirror says the 21-year-old has been on loan from Al-Sadd since January and managing director Brady asked Zarate's advisers to start negotiations with the Qatar club.

City paid £1m to have Zarate until May and Al-Sadd, owned by Qatari royalty, value him at a whopping £18m.

Spurs, Newcastle and Barcelona have all shown an interest, but Blues hope to negotiate a new loan fee for him.