No City offer for Larsson
Birmingham have received no offer from Manchester City for winger Sebastian Larsson, it is understood.
Larsson, whose contract runs out this summer, has been the subject of speculation linking him with a move to Eastlands.
But sources close to Blues are adamant the only concrete bids for the Sweden international came from Aston Villa and Newcastle.
Those two potential deals fell through because Larsson was unable to come to agreement over personal terms.
Blackburn have also been reported as having made a bid for Larsson but this is again wide of the mark.
Meanwhile, Blues remain confident that striker Obafemi Martins will complete his loan move from Rubin Kazan before the transfer window closes.
Birmingham have taken a major step towards sealing the deal by obtaining a work permit for the former Newcastle player.
Now it is a case of Martins passing a medical and agreeing personal terms - and City sources are optimistic there should be no major obstacles to the deal going ahead.
Blues manager Alex McLeish, however, will take nothing for granted until Martins has formally signed after failing in his bid to sign Robbie Keane and Kenny Miller.
If the deal goes through, Martins could make his debut in Wednesday's home clash with Manchester City.