Birmingham City have rejected Alex McCleish's resignation it has emerged this afternoon and are seeking financial compensation.

The Scot has been linked with a move to Aston Villa but Blues have received no official approach from Villa Park.

Birmingham will hold McLeish to his contract unless a compensation payment is thrashed out.

McCleish resigned on Sunday via email, which was described by the club as 'irresponsible'.

"Birmingham City Football Club can confirm that Alex McLeish has resigned as manager," said a statement on the club's website.

"No further comment will be made at this moment in time and updates will be released in due course."