The French striker, who had his contract with Blues cancelled by mutual consent last month, has stated that he intends to play for one more season although he has ruled out the possibility that he will re-join his hometown club Bordeaux.
"Bordeaux is not among the possible choices," the former Blues star told French Sports magazine L'Equipe.
"I've discussed it at length with everyone at the club and I don't think I can bring anything. The young players don't need me."
"Whatever happens I will join a quality team. I'd rather stop playing than join an average team. It will probably be my last season and I want to finish on a high." Speaking of his time at Blues and what led to his ultimate departure, Dugarry said: "I enjoyed myself a lot with Birmingham but it was not possible any more on the human side. It was a family choice."