McLeish pointed out to Ferguson last season that deciding to play again for his country may impact on the contribution he could make for Blues given the physical demands of the Barclays Premier League.
Scotland boss Craig Levein asked Ferguson to reconsider his position but the midfielder has decided to concentrate solely on club matters.
McLeish said: "It's good news for me and Birmingham because of the physical demands of the Premier League on a player.
"Barry was magnificent for us last season and hopefully he will be able to maintain an edge, freshness and sharpness by playing just for Birmingham.
"I am not saying he wouldn't have been able to do that had he played for Scotland but it would certainly have been a test for him. He was immense for us and we hope he can do the same again."
Source: PA
Source: PA