Birmingham

Blues supporters woke up on Thursday morning to comments from acting chairman Peter Pannu over McLeish’s demands – described as “a very large amount of money” – and the former Scotland boss’ status in the game when his name was compared with that of Real Madrid’s Jose Mourinho.

But fast-forward to early afternoon and Pannu told the Birmingham Mail that fresh terms could be agreed before the Blues’ next game on Sunday September 12 when Liverpool make the trip down the M6 for a St Andrew’s showdown (Birmingham 50/1 – Top Four Finish).

“This is all nonsense,( said Pannu. “We are just perhaps inches away from Alex signing a contract, possibly by next week.

“Our relationship is phenomenal, we are very strong and close, and I want to dispel this notion that there is anything wrong.

“In fact, I spoke to Alex about the Mourinho reference and we laughed about it. In the whole context of the interview I did, it would not have had a sting to it. But to take out the extract like that made it look worse than it was.

“Mourinho came up because I mentioned that the agent who made the initial approach to me about Alex and his contract represents Mourinho.

“Nothing was meant as a slight to Alex in the context of the conversation I had.”

McLeish appears to have been happy to keep a dignified silence over the issue after refusing to be drawn when unveiling latest signings Alexander Hleb, Martin Jiranek and Jean Beausejour.

Birmingham enjoyed a fantastic run under McLeish last season after setting a new club record of 12 games without defeat in the top flight.

The club eventually finished in ninth spot – their best season in some 51 years – to mark their return to the big time in style after a one-year exile in the Championship.

This time around the Blues have started well and are unbeaten in three games, although they let a 2-0 lead slip against 10-man Bolton at the Reebok last weekend (Bolton 13/2 – Relegation).

Such failure to close out a game will not be lost on McLeish who made 77 appearances for Scotland as a central defender between 1980 and 1993.

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Benitez left Anfield earlier in the summer after a poor campaign which saw the Merseysiders fail to produce a strong challenge in either the Premier League or Champions League.

As a result, Liverpool need to appoint a new man with Fulham chief Roy Hodgson heavily linked with the hot seat.

However, Reds executive director Christian Purslow is now examining further options and Deschamps is on his radar.

Marseille president Jean-Claude Dassier told L’Equipe: “I was expecting his call because I had heard of Liverpool’s interest in Didier.

“He asked me if I would allow him to meet Didier and (agent) Jean-Pierre Bernes.

“I replied that I would never forbid anyone from meeting whoever.

“I also kindly indicated to him that there wasn’t the slightest chance for him to pinch our coach. Even in his dreams.”

Deschamps has experience of the Premier League after spending a season with Chelsea following five years with Juventus.

He also led France to a World Cup win in 1998 on home soil and the European Championships title two years later during an international career which earned him 103 caps.

The 41-year-old is the latest in a long line of names linked with Liverpool, with the aforementioned Hodgson said to be in the running along with the likes of Martin O’Neill, Guus Hiddink, Slaven Bilic and Mark Hughes.

Whoever gets the nod will have the double task of reviving Liverpool’s fortunes while also convincing the club’s star players like Steven Gerrard, Fernando Torres and Javier Mascherano that there futures lie in the famous red shirt.

The Reds failed to qualify for next season’s Champions League after a disappointing seventh-placed finish in the Premier League while the club’s American co-owners are also looking to sell up as well.

It all points to a crunch season at Liverpool who start their season with a home clash against Arsenal.

The Gunners kicked off last season on Merseyside and promptly hammered Everton 6-1 (Liverpool v Arsenal 8/1 – Opening Day Fixtures – Game With Most Goals).

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