Blues have had an estimated £1.25million truned down for the highly rated 19-year-old England Uner 19 international defender, who Burley feels would benefit more from at least one more season at Championship level.
"The bid from Birmingham is totally unacceptable for a player of Nathaniel Clyne's potential," he told the Croydon Advertiser.
"It's not even worth looking at. He's still very young and is still developing.
"He is better off in the Championship for another season or two at least.
"I'm going to talk to his mother and explain why this is the best place for him.
"His agents seem to be trying to move him on for some reason, I think it's disgusting.
"He might move on at some point but he is in the best place to develop right now.
"Maybe Birmingham should consider that the last teenage full-back I sold was Gareth Bale at Southampton for £12million.
"Nathaniel is not the finished article yet but he has enormous potential and I want him to stay here and develop into an even better player."