Birmingham City haven't given up on securing Sebastian Larsson to a new contract.
The Sunday Mirror says contract talks with Swedish winger Larsson broke down in January and both Everton and Newcastle will make moves for the 26-year-old, who will be a free agent next month.
But McLeish plans to up his pay offer as a reward for the way Larsson has performed in the last two months after a move to Newcastle broke down.
McLeish said: "Larsson has restored my faith in players because his commitment to the cause has been first class."
