HARRY Redknapp has reportedly agreed a one-year deal to stay on as Birmingham manager after guiding the Championship club to survival.

Sandbanks-based Redknapp was appointed for the final three games of the season and kept the club up on the final day.

Sunday's 1-0 win at Bristol City ensured the Blues finished 19th, two points above the relegation zone, with Blackburn dropping into League One.

Under Redknapp, Birmingham also beat Huddersfield 2-0, although they lost 1-0 against Aston Villa in his first game at the helm.

The former Cherries boss, 70, this week held discussions with Birmingham owners Trillion Trophy Asia.

He had made no secret of his openness to stay, although wanted assurances on the club's ambition and transfer budget.

Ex-Cherries boss Paul Groves was part of Redknapp's backroom team during his temporary spell in charge and could also join permanently.

Birmingham are expected to have cash to spend in the summer, even after previous boss Gianfranco Zola splashed out £10million in January.

The Italian, who replaced Gary Rowett in December, only won twice in 24 games before quitting following a 2-0 home defeat to Burton last month.