Sebastian Larsson is yet to agree to new terms at Birmingham City.

The Sunday Mercury says talks between the Sweden international and Blues have been on-going for some time but they are still to reach a conclusion and, to protect themselves, Blues decided to take up the one-year option on his current deal.

That has only disgruntled Larsson further as the midfielder, who celebrates his 25th birthday today, thought he was close to agreeing improved terms.

The ex-Arsenal man is happy at St Andrew's and wants to stay but he feels he will have to look elsewhere if Blues don't show their commitment to him by offering an improved contract within the next few weeks.

Larsson also wants assurances on his role in Alex McLeish's plans.