Birmingham to hold talks with out-of-contract striker Mikael Forssell

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The Finland international is out of contract at the end of next month, although Blues could invoke a two-year option on his current deal.

May the Forssell be with you: Blues striker in talks

But he is one of City's biggest earners and co-owner David Sullivan has admitted the club may struggle to afford to keep players out of contract now the club has been relegated from the Barclays Premier League.

Forssell, who came close to joining Hanover last summer, was the club's leading scorer with nine goals in the season just gone and was a first team regular during the final third of the campaign.

That helped prove his fitness after overcoming a long-term knee problem but his wages could still be a stumbling block to an extended stay with Blues.

Sullivan made no specific reference to Forssell but said: "We have got players whose contracts are up that we cannot afford to renew with the wages they are on and they may decide to leave."

City also have to sort out the future of veteran goalkeeper Maik Taylor, 36, whose contract is also up at the end of June but, unlike Forssell, has no option of an extension.