Birmingham City were today considering their stance on in-demand Sebastian Larsson.

Blackburn Rovers have made a £500,000 bid for the winger, who is due to be out of contract in the summer.

But Blues were deciding whether to accept and give them the green light to open talks, or keep him until the season’s end.

Rovers’ offer is half that of Newcastle United’s, which came in a fortnight ago, although it could rise due to add-ons.

Blues deemed Newcastle’s acceptable and Larsson’s representatives opened negotiations, only for the transfer to fall through as terms could not be agreed.

Rovers know that Blues are in a tricky position as Larsson rejected the last St Andrew’s contract offer and risk losing him for nothing on a Bosman in May.

But on the other hand, with the Carling Cup still to play for and a battle against Premier League relegation, they could be reluctant to weaken their options by cashing in on a key and experienced performer, even though David Bentley has joined on loan from Spurs.

Larsson missed the Villa derby with the reason given as a nagging hip and groin injury and effectively holds all the aces because ultimately it will be down to him to agree a salary with whichever suitor.

Villa were also reported to have made a bid but this has been denied by a Blues source.

Sunderland have registered an interest in Larsson, but indicated they would prefer to press their case in the summer.

Michel’s agents have flown into Birmingham for talks with Peter Pannu about the Spanish midfielder’s future.