Birmingham City Football Club insist Alex McLeish is close to signing a new contract.

Reports had emerged that Scottish coach has had a bust-up with the club’s owners, over the amount of money on offer in his proposed new deal.

However, Blues vice-chairman Peter Pannu has slammed claims McLeish could walk away from St Andrews, insisting that a new contract is close to being agreed.

"This is all nonsense. We are just perhaps inches away from Alex signing a contract, possibly by next week,” he told the Birmingham Mail on Thursday.

"Our relationship is phenomenal, we are very strong and close, and I want to dispel this notion that there is anything wrong.”

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