Alex McLeish admits he has been in discussions with Birmingham City Football Club about a new contract at St Andrews.

Since taking over the Blues during the 2007/08 season, the former Rangers and Scotland boss has earned a reputation as one of the best young coaches in British football.

Although he couldn’t prevent relegation during that debut campaign, he guided them back to the Premier League at the first attempt and this season they are challenging for a place in Europe.

Vice-chairman Peter Pannu revealed recently that he and owner Carson Yeung were keen to tie McLeish to a new deal, and the 51-year-old has confirmed talks have begun.

"We have started negotiations regarding a new contract. I have met Carson and Peter Pannu," said McLeish. "They gave me some initial figures. I'll get my advisors now to meet with them and will let them thrash it out."

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