Blues will test Petrie's resolve with new Calderwood bid

BIRMINGHAM City look set to increase their compensation offer to Hibernian for manager Colin Calderwood to £400,000.

The club want Calderwood to become their new assistant manager, linking up again with Chris Hughton following their successful spell together at Newcastle United. Hibernian chairman Rod Petrie rejected an offer of 300,000 for Calderwood at the end of last month.

But Birmingham are ready to step up their attempts to lure Calderwood to St Andrew's after resolving their compensation dispute with Aston Villa over the departure of ex-Motherwell, Hibs, Rangers and Scotland manager Alex McLeish.

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Calderwood has made it clear that he won't walk out on Hibs and his future is now firmly in Petrie's hands. Asked about his future at the weekend, Calderwood said: "I want to be Hibernian manager until someone tells me that's changed one way or another, sacked or compensation."

Birmingham have found Petrie a tough nut to crack but they remain determined to land Calderwood.

Hughton needs to move quickly to boost his backroom team as he is effectively running the whole show himself at the moment.

Birmingham's two Scottish coaches, Peter Grant and Andy Watson, have both quit the club.

Grant has linked up again with McLeish at Villa while Watson is negotiating a settlement of his Blues contract.