McLeish is looking for a way to sever ties with Birmingham
Birmingham City have refused to accept Alex McLeish's resignation as manager and are seeking financial compensation, BBC Sport understands.
The Scot has been linked with a move to Aston Villa, who on Monday contacted the Blues acting chairman Peter Pannu about his availability.
But BBC 5 live's Midlands football reporter Pat Murphy said Pannu insisted McLeish was not available for talks.
It is believed City are looking for compensation of up to £5.4m.
"Mr Pannu's response [to Villa's enquiry] was concise: 'It will cost you as he's still our manager as far as we are concerned'," Murphy said.
- Joined Aberden in 1976
- Spent 15 years with the Dons, playing under Sir Alex Ferguson
- Won 77 caps for Scotland
- Managed Motherwell, Hibs and Rangers in Scotland
- Guided Gers to domestic treble in 2003
- Became Scotland manager in January 2007, beating France 1-0 in Paris later that year
- Joined Birmingham in November 2007, saw them relegated in 2008 but brought them back at the first attempt
- Guided Birmingham to Carling Cup triumph in February 2011, but Blues were relegated on final day of the season
The acting chairman met with legal representatives on Monday and there has been a suggestion that Birmingham will try to place McLeish on gardening leave.
The former Rangers manager has two-and-a-quarter years remaining on the extended contract he signed in 2010, having arrived at St Andrew's in November 2007.
But it is understood that McLeish - currently on holiday in Corsica - is pursuing a case for constructive dismissal against Birmingham.
Pannu said: "I got an e-mail from Aston Villa, finally replying to all of our queries.
"As expected, their legal department said 'now Alex McLeish is a free agent having resigned, we're free to speak to him'.
"Within the first year [of his new contract] he, or the club who sign him, have to compensate us at £5.4m.
"The first year expires on 30 June. The second year starts 1 July, when the compensation fee is £3m.
"The urgency of the whole thing, with this e-mail from Aston Villa, shows they can't even wait 17 days when the compensation is lower. It shows what this is all about.
"Because of this, what option is left to Alex McLeish and his advisers? To make allegations against Carson Yeung, against the board, for interference or whatever excuse to show constructive dismissal.
"I'll be seeking an injunction preventing Villa from hiring him. I'll be reporting what's happened to the Premier League."
Villa have not made an official comment.
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