Larsson had been in preliminary talks with Blues' old board of directors on a new five-year deal but they were put on hold as the club was in the middle of takeover talks with Carson Yeung.
Now, with the Blues board two months into their reign at St Andrews, talks on a new contract for Larsson are expected to resume.
"We are going to meet Birmingham's new chairman soon and sit down and discuss this," his agent has told Fotbollskanalen
"There is other interest in Sebastian as things have been going really good for him lately and he is on a really high level in England.
"He is in a great position.
"He is really liked and plays on a regular basis, and likes both the club and the town.
"Things are going good for Birmingham and the club's new owner has talked about making a move to lift the team, so we are just hoping that they will come up with a good offer to him."