The Scot joined from Everton in January, leaving a club who are competing from a Champions League place.

McFadden scored his first goal since his £4.75million move when he netted from the penalty spot in Saturday's 1-1 draw at West Ham United.

It was enough to move Alex McLeish's side out of the bottom three, although only on goal difference from Reading, and they are still searching for their first win since Boxing Day.

But 24-year-old McFadden is adamant he made the right decision in opting to move to City.

The Scotland international said: "I have maybe swapped a fight to get into the Champions League for a relegation battle at Birmingham.

"But I would rather play every week in a relegation fight than be a bit-part player at Everton which was the case.

"I still maintain that Birmingham is a club with a lot of potential and I'll be giving it my best shot to make sure we are not relegated and then we can regroup in the summer.

"It's always nice to get your first goal and hopefully I can chip in along with the rest of the strikers."

McFadden revealed he could have ended up on loan at his boyhood heroes Celtic but believes moving to Birmingham is the right move at this stage of his career.

McFadden said: "Celtic tried to take me on loan before the transfer window opened and I was keen on it at the time but I didn't speak with Gordon Strachan.

"They never came in with a bid for me and then Alex McLeish really showed he wanted me here and that was a big thing for me."