The Sweden international turned down the deal which was initially tabled in May and was linked with a move away from St Andrews during the transfer window.

But with chairman David Gold and manager Alex McLeish united in their desire to retain his services, Larsson remained in the Midlands as the transfer deadline passed at midnight on Monday.

And Gold has called on the midfielder to commit his long-term future to the club and help Birmingham regain their place in the Premier League.

He told the Birmingham Mail: "Now this has been put to bed, let's look forward.

"We offered Seb a new contract because of the high regard we all hold him in and certainly I would love him to sign it, we all would.

"I believe he can play for many, many years in the Premier League as a Birmingham City player, enjoying a very bright future here with us and Alex McLeish.

"He is a crowd favourite, a board favourite, Alex picks him as a regular. He is a very important player for this club."

Gold can understand why Larsson and team-mate James McFadden were linked with moves away from the club over the summer.

But he is delighted that the duo remain on board and sees them as key players for McLeish as he plots a promotion push.

Gold added: "Seb is a great guy, so is James. They are two quality players and if I was in their position, having been relegated, I would probably have been banging on the manager's door saying 'let me go, let me go, let me go'.

"But let me say that both of them have conducted themselves well and have been very, very professional about all this.

"We said that we would keep hold of Seb and James not because we are philanthropic, but because they are the type of players who would get us back to the Premier League.

"That's been the driving force, the motivating thing for us."