Birmingham manager Alex McLeish believes that Sebastian Larsson has significantly improved his performances this season and therefore wants the midfielder to sign a new deal.
The Swede is out of contract at the end of the current campaign and, as a result, he could begin discussions with European clubs outside of England in January.
McLeish wants to secure Larsson to an extension, but an agreement has yet to be reached and the classy midfielder said at the beginning of December that the ball was in Birmingham's court.
Blues' manager said: "Yes, we want to keep Seb. He's certainly been one of the stars performance-wise this season.
"I think he's taken his game to a new level. Whether that's because his contract is nearly out I don't know.
"Sometimes you see that with players in the last year of their contract.
"Seb is an international now and is a regular in the Sweden team, whereas maybe he was a bit-part player over the last couple of seasons.
"Maybe that was because he wasn't on top form the last couple of season, but he certainly is now.
"He is one of the first picks in our team and it's up to every player to maintain that kind of level."
McLeish added: "Seb can only talk to European clubs. He can't talk to anybody in the UK but we're not daft and we know how football works.
"He's certainly free to talk to foreign clubs in January.
"It's a concern because, if we've not done anything about it, then Seb has decisions to make."
McLeish also has to sort out the future of striker Garry O'Connor, whose six-month contract, signed last summer, ends in December.
The Scotland international is currently on loan to Barnsley for a second temporary spell this season.
He was only offered a short term deal at Blues after undergoing surgery on both hips in the past 12 months.
McLeish said: "I'm meeting with the board. That will be one of the subjects on the agenda."
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