 Whaley (left) grabbed the only goal in a thrilling game at Deepdale |
Preston missed out on the play-offs despite Simon Whaley's late winner. And Birmingham's defeat, coupled with Sunderland's thumping win at Luton, also meant Steve Bruce's side missed out on the Championship title.
Whaley raced on to a long ball to outmuscle Stephen Kelly and Colin Doyle and tap home late in the second half.
David Nugent hit the post and Brett Ormerod twice went close for the home side while City's Sebastian Larsson and Gary McSheffrey wasted good chances.
But other results meant Preston's battling victory was in vain as they missed out on a play-off by one point and one place.
North End made a wonderful start and hardly allowed Birmingham to get out of their half in the opening 25 minutes.
Nugent looked lively and despite Preston's promotion failure, he seems certain to be plying his trade in the Premiership next season.
The England man was unlucky not to put North End ahead in the opening ten minutes when his right-foot shot hit the outside off the post after Birmingham failed to clear a free-kick.
Ormerod then raced through on goal only to be denied by a fine tackle by Stephen Kelly and Nugent tested Colin Doyle with a well-struck 20 yard shot.
Birmingham finally responded a third of the way into the game.
Nicklas Bendtner and McSheffrey combined on the right wing and Andy Cole's shot was blocked by Liam Chilvers.
And with Cole still appealing for handball, Larsson almost put the Blues ahead but his strike crashed off the bar and rebounded to safety.
There was still time for Kelly to deny Ormerod for a second time, this time reacting first to turn the ball behind after Doyle spilled Whaley's fizzing low shot to keep the score level at the break.
The visitors were much improved in the second half and should have gone ahead moments after the restart.
The impressive Bendtner did brilliantly to jink his way free on the right and his dinked cross fell invitingly for McSheffrey who tried to power the ball in but only succeeded in wastefully heading over from six yards.
Cameron Jerome and Dudley Campbell came off the bench as the Blues pressed for the goal that would give them the title.
And Birmingham's all-out attack policy almost paid dividends in the final 20 minutes.
Top-scorer McSheffrey spurned another good chance to head Birmingham ahead from a Larsson cross and also blazed a shot over.
And Radhi Jaidi sent another headed chance narrowly wide for Steve Bruce's side.
But Whaley popped up to win the game, capitalising on hesitancy in the Blues defence to calmly prod the ball away from Kelly and Doyle and shoot into the empty net.
Preston: Henderson, Alexander, Chilvers, St. Ledger, Hill, Whaley, Sedgwick (Lewis Neal 73), Davidson, Pugh, Nugent (Ricketts 87), Ormerod (Agyemang 61).
Subs Not Used: Lonergan, Soley.
Booked: St. Ledger, Whaley.
Goals: Whaley 85.
Birmingham: Doyle, N'Gotty (Johnson 46), Martin Taylor, Jaidi, Kelly, Larsson, Nafti (Campbell 75), Clemence, McSheffrey, Cole (Jerome 61), Bendtner.
Subs Not Used: Maik Taylor, Vine.
Booked: Martin Taylor, Jerome.
Att: 16,837
Ref: A D'Urso (Essex).