McFadden joined Birmingham from Everton in January.
He told the Birmingham Mail: “I wouldn’t say it’s [the Championship] a comedown but I want to play in the Premier League, everybody does.
“The Championship has the biggest rewards of any league – it’s the division where there’s most at stake – and teams tend to tighten up and the football can suffer. It’s definitely a competitive league and maybe the football suffers for that.
“I’m quite happy, although I’ll be honest – I wouldn’t be looking forward to a second season in the Championship.
“Right now, though, it’s a long time away and at the minute we’re sitting top of the league and if we keep getting the results then I won’t need to have any thoughts about it.”