Alex McLeish admits Birmingham are becoming a victim of their own success when it comes to signing new players.

It is no secret the Blues boss has between £20-£40million to spend in the January transfer window following Carson Yeung's takeover, with a host of big-name players already linked. Reported moves for Kevin Kuranyi and Kenwyne Jones have hit the buffers due to the inflated cost of the packages involved.

And McLeish, while being as coy as ever when it comes to potential targets, admitted the resulting situation is not easy. "Yes, that is a problem for me," he said. "That's what I have to consider, is when we take the next step."

He continued: "I know that if Birmingham keep improving we're going to have to bring in players - wages will increase, players already here will want higher wages and new contracts. It's a natural evolution.

"I don't want to take too big a step at this moment because I don't think it would be right."

Birmingham go into Tuesday night's FA Cup third-round replay against Nottingham Forest riding the crest of a 13-match unbeaten run in all competitions while standing a lofty eighth in the Barclays Premier League.

Asked whether Blues' stunning form is having an impact on his attempted business, McLeish replied: "We relish that - that's the new challenge for us. Long may that continue.

"I'd love to continue being a victim of our success if this team can keep performing the way they are and if I can help them with two or three players to bolster their dreams."

Spanish midfielder Michel, 23, is undertaking his medical on Monday in order to complete his £3m switch from Sporting Gijon.

Regarding further new arrivals, McLeish insisted there is nothing imminent but that he "remains interested in one or two players".

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