McLeish started talks over a new deal before the end of last season after steering Blues to promotion and then establishing them in the Barclays Premier League.
However, it is only now that McLeish appears ready to put pen to paper on a new deal.
He has said: "Talks have progressed and I'm just inches away from signing a new contract.
"The figures and everything are fine. We've just got to iron out the rough edges.
"We're pretty close and there are just a couple of technicalities - a release clause and that kind of thing - but it's not excessive from either camp and it's absolutely standard.
"Contracts are not something I like talking about in public, but it will be nice to get it resolved."
Source: PA
Source: PA