The Sweden international’s agent claims other clubs are showing an interest in signing him.
Larsson’s current deal expires at the end of the season.
“I can’t comment on any information like that,” Per Jonsson told Fotbollskanalen regarding the reported contract details.
“We are going to meet Birmingham’s new chairman soon and sit down and discuss this.
“There is other interest in Sebastian as things have been going really good for him lately and he is on a really high level in England.
“He is in a great position.”
Jonsson added: “He is really liked and plays on a regular basis, and likes both the club and the town.
“Things are going good for Birmingham and the club’s new owner has talked about making a move to lift the team, so we are just hoping that they will come up with a good offer to him.”