The Blues are in the market for a new manger having dismissed Lee Clark on Monday, with the club only out of the relegation places on goal difference.
Clark had failed to improve upon his dismal season last term, with the club only remaining in the Championship due to a late equalising goal on the final day of the campaign. Whilst many fans were keen to see him dismissed over the summer, he remained in charge, but has managed to lead the club to just two wins from 12 games this season.
A number of names have been mentioned to take the vacant post, with Owen Coyle, Gary Rowett and ex-Blues boss Chris Hughton said to be in the frame, but the club officially approached MK Dons as to the availability of their manager Karl Robinson - who swiftly shot-down any potential move for the highly rated 34-year-old.
The Dons currently sit in the play-off places in League One, and, although Robinson admitted that he was flattered to have been approached by Birmingham, he was also delighted to hear that MK chairman Pete Winkelman was keen to see him remain at the club.
Speaking to the BBC, Robinson said: "I'm flattered - but just as flattered by the chairman's response. It shows he wants me at this football club.
"That gives me the satisfaction of knowing you're wanted somewhere."
Robinson is currently the fourth longest serving manager across the Football League and Premier League, having taken charge at Stadium MK in May 2010. He is very highly regarded in the lower divisions, and his reputation enjoyed a major rise when he masterminded the Dons 4-0 League Cup victory over Manchester United earlier this season.