The ex-Arsenal player has made 18 appearances for the Midlands club this season and scored twice, with his goals coming in the
draw at Fulham
and the
2-1 League Cup quarter-final win
over Aston Villa.
"Yes, we want to keep Seb," added McLeish. "He's certainly been one of the stars performance-wise this season.
"I think he's taken his game to a new level. Whether that's because his contract is nearly out I don't know.
"Sometimes you see that with players in the last year of their contract.
"Seb is an international now and is a regular in the Sweden team, whereas maybe he was a bit part player over the last couple of seasons.
"Maybe that was because he wasn't on top form the last couple of seasons, but he certainly is now.
"He is one of the first picks in our team and it's up to every player to maintain that kind of level."
McLeish will raise Larsson's situation with the Blues board and also plans to discuss the future of striker Garry O'Connor.
The Scotland international's six-month contract, signed last summer, ends this month.
McLeish said: "I'm meeting with the board. That will be one of the subjects on the agenda."
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