The former Arsenal youngster’s contract expires in the summer, and talks over resigning have stalled. He signed for The Blues in a £1 million deal in January 2007, after impressing on loan in the first half of that season. He has since gone on to score 23 goals in 154 appearances for The Blues.
Newcastle’s local rivals Sunderland are also thought to be closely following the situation, with manager Steve Bruce, who signed Larsson for Birmingham in 2007, still a keen admirer of the right-winger. However, it is thought that Sunderland would prefer to wait until the summer, when they believe they might be able to snap him up on a free transfer.