6:21PM BST 11 Jul 2011
McLeish resigned as Birmingham manager after three and a half years last month and eventually took charge at Aston Villa as Gerard Houllier's successor.
Birmingham, who have already appointed Chris Hughton as their new manager, demanded Villa pay them compensation for the remaining two years of McLeish's contract and initially threatened legal action.
But the possibility of a battle between the two clubs has now been removed via confirmation in a statement issued by City.
Birmingham's joint first team coach, Peter Grant, and chief medical officer, Dr Ian McGuinness, are also moving to Villa.
But other members of McLeish's backroom staff, joint first team coach Andy Watson and goalkeeping coach Dave Watson, are not following them to Villa Park.