Aston Villa and Birmingham City have reached a compensation agreement following manager Alex McLeish\'s cross-town move. McLeish resigned as Blues boss after three-and-a-half-years at St Andrew\'s last month, following Birmingham\'s relegation from the Premier League and eventually made the move to arch-rivals Villa, still in the top flight, who saw Gerard Houllier step down on health grounds. Birmingham, who have already appointed Chris Hughton as their new boss, demanded Villa pay them compensation for the remaining two years of former Scotland centre-half McLeish\'s contract and initially threatened legal action. 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. A joint statement issued on behalf of both Midlands clubs said Monday: \"Birmingham City and Aston Villa can confirm that agreement has been reached between the parties ending the legal disputes surrounding Alex McLeish\'s departure. \"Aston Villa has agreed to pay Birmingham City an undisclosed figure following negotiations whereby the parties have agreed to bring to an end all disputes, including the further recruitment of Peter Grant and Dr Ian McGuinness by Aston Villa.\"