The former Bradford City and Sheffield Wednesday boss admitted the uncertainty surrounding a potential takeover at St Andrew's had put him off the role with the Premier League club.
"Someone called me last week and said would I be interested in the Birmingham job?" he told Sky Sports News.
"It's a bit unstable for me in that who owns the club, so I'm not in the running for the Birmingham job, no."
Meanwhile, Jewell decided against putting his name fully into the running to replace Steve Staunton as Republic of Ireland manager.
"I'm very flattered I have to say but I'm looking for the day-to-day involvement on the training ground with the players," he added.
"I'm only 43. Maybe further down the line I might consider it. I've had a great six months out of the game but I'm looking for the day-to-day stuff."