Birmingham have confirmed discussions to offer manager Alex McLeish a new contract have started. McLeish has been in charge at St Andrews since late 2007 and currently has a further season to run on his existing deal.

He has gone from strength to strength in the Midlands, guiding Birmingham to promotion last season and into the top half of the Premier League table this term.

The Scot has spoken with vice-chairman Peter Pannu regarding a new deal and is also expected to meet owner Carson Yeung, who took over the club last autumn.

"I spent about two hours on Monday with Alex, together with the chief executive," Pannu told a fans' forum. "We have gone through a contract.

"Carson acknowledges his contribution thus far.

"We have indicated to him, in no uncertain terms, that we want to have a future with him at the club. We told him that we want him to stay.

"Although his contract does not expire until 18 months from now, we have started negotiations.

"We have indicated to Alex the sort of terms we will be offering to him and he received them very, very well.

"He will be meeting Carson personally when Carson flies in at the end of this week."