Larsson's current contract ends in June although City have a 12-month option in their favour that they could take up.
The former Arsenal player said: "All I have said all along is that it's up to the club now to let me know what they want to do. Then we will see what happens.
"If we can agree on something, then I am more than happy to sign a new deal - but it's one thing just saying it, you need to start talking and agree something.
"I'm not worried about it. There is a lot of new stuff I suppose for the owners and the board to deal with, we will see."
Larsson admitted: "With the previous board there was a contract offer a while ago which was never signed and it was put on hold.
"Now there are new owners and we will have to wait and see what they want to do."
Birmingham manager Alex McLeish said: "Seb is in the last year of his contract but we have got a year's option we can take up.
"I would think he would be one player for us to secure."