Birmingham wait on Aston Villa approach for Alex McLeish
Birmingham are still waiting to receive an official approach from Aston Villa to speak to Alex McLeish - before the battle to thrash out a compensation package can get under way in earnest.
McLeish resigned as Blues boss on Sunday and the Scot has been the favourite with the bookmakers to replace Gerard Houllier at Villa.
Press Association Sport understands City will be seeking the full £5.4 million due in compensation for the remaining two years of McLeish's contract at the time he quit.
This figure will be reduced to £3 million on July 1 but City will demand the amount that was due on the date McLeish ended his three-and-a-half-year reign.
McLeish, who is currently on holiday, is considering a case of constructive dismissal against Blues.
His relationship with City owner Carson Yeung became increasingly strained last season.
Such action by McLeish could drag on, as was the case when Martin O'Neill left Villa last August and did not settle the matter for nine months.
But bringing such a case against Birmingham will not mean Villa can automatically escape paying compensation to their midlands rivals for the remainder of McLeish's contract.
Any such action taken by McLeish against Birmingham would run alongside any battle between the two clubs over the former Rangers manager.
Certain sections of Villa fans continue to make it clear they do not want McLeish as manager.
Jonathan Fear, editor of the Vital Villa fans' website, said: "I would fear for the atmosphere and attendances at Villa Park if Alex McLeish is appointed manager.
"I've got friends who are adamant they will return their season tickets if McLeish is appointed.
"McLeish is a tough bloke but no matter how thick skinned you are, it will be a tough sell for him to win over the Villa fans."
Villa are keen to make an appointment as soon as possible so McLeish - or any new manager - can be in place before the players report back for pre-season training on July 7.
But Birmingham are also stepping up their attempts to find a replacement for McLeish.
Birmingham chairman Peter Pannu said: "I am discussing the situation with Carson and we hope to install the new man as soon as possible.
"There are at least six (candidates) on the radar."
Former Newcastle boss Hughton is the number one choice of Birmingham fans in a poll conducted by the Birmingham Mail newspaper.
But Roberto Di Matteo and Gianfranco Zola are also free agents after their previous spells at West Brom and West Ham respectively.
Blues are set to complete the signing of Morgaro Gomis from Dundee United on a free transfer despite McLeish's departure.
Pannu said: "Gomis is still coming in to Birmingham."
City have also received an inquiry from Sunderland over midfielder Craig Gardner but the club insist no bid has been made so far.
Latest in Sport
Chelsea vs Tottenham combined XI: Hugo Lloris or Thibaut Courtois? Willian or Christian Eriksen? Who makes the final cut?
Chelsea vs Tottenham: Eden Hazard exclusive interview - All is rosy in the garden of Eden
Arsenal vs Monaco: Theo Walcott 'involved in spat' with fans after Champions League defeat
Carl Frampton vs Chris Avalos; Tyson Fury vs Christian Hammer; Dmitry Chudinov vs Chris Eubank Jr - boxing on TV this weekend
Robbie Savage avoids driving ban - because he would get 'accosted' too much if he had to use public transport
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts