Birmingham are to offer an improved contract to manager Alex McLeish when club owner Carson Yeung and chairman Peter Pannu return from the World Cup.
The duo are watching the latter stages of the competition in South Africa but will also discuss McLeish's new deal. The former Scotland boss has made it clear he would like to sort out his future sooner rather than later to assure potential transfer targets that he is at St Andrews for the long haul.
Pannu said: "We have had extensive talks with Alex and his representative. His agent told us what he wants and we told his agent we will be revisiting the terms and we are currently putting together a new package."
He added: "I will speak to Carson Yeung first before a deal is put to Alex to consider. There will be improved terms for Alex, and it will be presented to him after I have met with Carson in South Africa.
"Whether Alex accepts, or doesn't, is purely speculative, so there is no point in me talking about that.
"We don't want people to think that we don't want Alex to stay, just as we don't want people to think that Carson or myself are being pressurised.
"Alex is our manager, we are planning for the new season, and I don't see there being problems."
McLeish said: "My lawyer saw Peter about two weeks ago. They had a very amicable conversation and negotiations. We left it with Peter and the board to come back to us, so we now await the decision.
"Now we're about to embark on another campaign, I think it's the right time to drive it forward.
"It's the right time because if there are players attracted to come to Birmingham and players attracted to play under myself and my coaches, then they have to know that my future is with Birmingham."
Copyright (c) PA Sport 2009, All Rights Reserved.