McLeish is looking forward to working with the Birmingham board

McLeish said he had been given a strong hint the deal would not go ahead when he held initial talks with the Blues.

"It's good news now that the clarity is there and we can move forward," the former Scotland boss told the club's official website.

"I was basing my acceptance of the job on the fact it wouldn't go through."

606: DEBATE As a season-ticket holder I am delighted with the way things have turned out Mr_Blueskies

McLeish took over from Steve Bruce, who left for Wigan, at the end of November after just failing to take Scotland to the Euro 2008 finals.

"The chairman David Gold and co-owner David Sullivan and managing director Karren Brady seem as if they've been revitalised, so hopefully we can look forward to some good things together," added the 48-year-old.

"When I had the meeting with them, before I took the job, there were things they told me that I couldn't reveal publicly.

"But everybody knows what's happened and that was part of the reason for me coming here - having those talks was important."