Scotland manager Alex McLeish is the favourite with the bookmakers although City sources are insisting no deal has been finalised.
City, in a media statement, said: "The Birmingham board has appointed just three managers in the past 14 and a half years. Each of those managers made improvements on their predecessor and took the club forward. The board will appoint a new manager within the next week and is looking forward to working with someone who can have an equally positive impact."
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