Alex McLeish has been unveiled as Birmingham's new manager.  He resigned from his post as Scotland manager yesterday afternoon just hours after the Scottish FA denied Birmingham's request to talk to him.

And this morning he was confirmed as Steve Bruce's successor at St Andrews after the former Manchester United captain departed to take over at Wigan.

Coach Roy Aitken, who was part of McLeish's backroom team at Scotland, has also made the move to St Andrews.

McLeish has signed a three-and-a-half-year deal with the West Midlands club and admitted the lure of the Premier League and day-to-day management was a significant factor in his decision.

He said: "The Scotland campaign was over and I really thought long and hard about staying on. I knew of some interest in the Premier League and had a desire to get back to day-to-day football.

"I really enjoyed my time in the Scotland job, it was a good period for me which was not day to day but allowed me to rekindle my appetite for the club scene again.

"I've come to a club in great tradition in football with a fervent and fantastic fan base.  I look forward to the challenge."

Chairman David Gold warned the protracted takeover deal with Hong Kong businessman Carson Yeung is looking increasingly unlikely.

Gold admitted takeover rules which forbade Birmingham giving Steve Bruce an improved deal but allowed them to appoint McLeish was strange.

"It's bizarre, I've got to say," he said.

"It's bizarre in the sense that the takeover board wouldn't allow you to enhance an existing contract, however it is quite in order, in the event that that contract ends, it is within the power of the board to offer a brand new contract to a brand new person.

"It is a bit unusual and it surprised us, that's why we got legal clearance about what we could do."

Asked about the takeover, Gold said: "I started off believing bid was 90 per cent assured and a couple of weeks ago I reduced that to 75 per cent. Now I believe it's only 50 per cent but only time will tell.

"The (current) board must actually take charge of the club and fully act as if the takeover doesn't happen, that's why we brought in Alex and are looking forward to the future."

"We are working on the basis the deal will not go ahead. If it does, that's another story.

"David (Sullivan, co-owner) and myself have been at this football club nearly 15 years and that's how it will continue until things unfold and we see where we are going in the future.

McLeish, meanwhile, admitted he is aware of the financial situation he will be in with regards transfers.

"I know the parameters and I'm comfortable with that," he said.  "I've always had a desire to come to the Premier League. I'd love to be managing in the Premier League for a considerable time."