But the Blues are known to be keen to keep Larsson at St Andrews and are prepared to offer him a five year contract when he returns from Euro 2008.
Reports in Sweden though have claimed that Newcastle have placed a bid believed to be around the £4 million mark, Larsson has already acknowledged that the European Championships are a chance to showcase his talents.
"It's a huge tournament and a lot of people are watching, but I have put aside the club issue for the time being to be honest," Larsson told the Birmingham Mail.
"I am just focusing on Sweden now and we will have to wait and see what happens afterwards.
"I have a contract with Birmingham and I like it. But, of course, once you have been in the Premier League you want to go back. It's for me the best league in the world."




