Zarate agent hints at loan extension

Zarate joined Blues from Al-Sadd in January for the remainder of the season and, although a likely transfer fee in excess of £10million may put a permanent move out of City's price range, Zarate's agent Christian Otero believes staying at St Andrews for another 12 months could be a possibility.

He said: "They (Al-Sadd) want more than they paid for Mauro but another loan deal might be possible."

He added: "It is not easy but Birmingham have priority as they have given him a chance and he is comfortable with the Birmingham manager Alex McLeish.

"We haven't set any date for any talks yet but I hope we can reach an agreement and speak soon.

"Mauro has captured the attention of other clubs as people can see he will be a top, top player. His performance against Manchester City last weekend is the normal sort of level for him."

Meanwhile Birmingham duo James McFadden and Olivier Kapo look like losing their battle to be fit for Saturday's crunch Barclays Premier League clash at Wigan.

Kapo has returned to training after a month out with a hamstring injury while McFadden had been hopeful of returning just two weeks after undergoing keyhole knee surgery.

But Blues first team coach Roy Aitken said: "Both of the injuries are moving in the right direction but we don't want to put a dead-line on them.

"This weekend is probably a game too early for James. Olivier is making good progress but again this weekend may be a bit too early."