Sullivan stated last month that Fry would be sacked if City were not in the top three of the Second Division by November - they are curently mid-table, seven points behind the leaders Huddersfield.
But he has changed his mind after City's recent revival and Fry's claim that the pressure he was being put under over his future was affecting the players.
Birmingham have obtained an extension to Gary Bull's loan spell from Nottingham Forest after the player scored five goals in six matches in his first month.
Michael Thomas, the former England midfielder, is considering a move after being told by Roy Evans, the Liverpool manager, that he must wait until someone plays badly. 'I don't want to sit around waiting,' he said. 'It could be a long time.' Sheffield United are to pay Rotherham pounds 75,000 for their goalkeeper Billy Mercer but could end up having to pay more than twice that amount because of built-in extras arrived at by a tribunal. Similarly, Stockport could end up paying more than twice the initial fee of pounds 15,000 for the Stoke midfielder Paul Ware.
Colin Addison, 54, has become Conference club Merthyr Tydfil's fourth manager in the past 15 months.Reuse content