The 16-year-old midfielder continues to be linked with United and Chelsea.
Francis told the Birmingham Mail: "Wherever Jude Bellingham goes I think he should have it written in the contract that he immediately goes back to Birmingham to play as a loan player because he has got to improve and the only way he is going to improve is by playing regularly.
"To go to Manchester United or Chelsea or wherever it may be, with respect to the lad he is not going to be a regular in the first team and he needs to be playing regular first team football to improve as a footballer."
He added: "I think he is a very talented young man; I sound like Brian Clough saying that don't I?
"For his age he has shown a lot of maturity when I have watched him. I think he is blessed with great individual talent.
"I am not exactly sure at this moment what his best position is but then again I think his manager would probably say exactly the same, but he is just a natural footballer who I think is capable of playing in any kind of position."