Per Jonsson confirmed the only Premier League side to have made an offer for the Sweden international are Newcastle, although there is also interest from abroad.
Per Jonsson: "I have seen [the Blackburn link] in the English newspapers but I know nothing about that.
"There are a lot of rumours at this time of year - the Wigan story is the same.
"The only offer I know of is from Newcastle but I haven't heard from them in the last week.
"There is interest from abroad as well but Sebastian wants to stay in England.
"It is still early in the window - we could know more at the end of July."
Birmingham accept they must cash in on a player who will not be at St Andrews at the start of the season, but KK is growing frustrated by the hold up.
He wants his squad (including all new signings) to be ready for the start of the new campaign.