Paul Montgomery has become a casualty of Blues’ relegation from the Premier League.

The chief scout and head of recruitment is negotiating a settlement after the board decided he should carry the can for some signings that have not worked out.

Montgomery, who was appointed by Alex McLeish in February 2008, was called to a meeting at St Andrew’s yesterday to be told that Carson Yeung wanted him gone.

The Hong Kong tycoon felt a change was needed after the disappointing impact overall of Aleksandr Hleb, Matt Derbyshire, Obafemi Martins and David Bentley, all of whom joined on loan.

It was a ruthless call by Yeung, especially as it leaves Blues without a recruitment figurehead just when they need to get to grips with re-tooling for the Championship.

Montgomery could argue he was a prime mover in setting up the bids for Roman Pavlyuchenko, a year last January, and Charles N’Zogbia.

Both didn’t come to pass after Spurs hiked an agreed asking price at the last minute and N’Zogbia demanded a higher wage after a £9 million transfer fee had been arranged.

He also put in the groundwork to get top McLeish target Moussa Dembele in Blues sights, only for Dembele to leave them in the lurch by joining Fulham instead.

But Yeung was also unhappy that Blues didn’t snap up Peter Odemwingie in the summer. He went on to be such a success at Albion.

And he was known to be keen on Ryan Babel.

Yeung has also queried the signing of Michel, who spent the second part of the season on loan to AEK Athens.

Montgomery formerly worked for West Ham United and Newcastle United, and was with McLeish for a spell at Rangers.

Meanwhile, Blues have activated a one-year option on Colin Doyle’s contract, which was due to expire at the end of June.

Doyle has been back-up goalkeeper at Blues for the last four seasons after Maik Taylor reclaimed his place from the Irish international early in 2007-08.

Doyle, who was loaned to Coventry City in August, made a solitary Premier League appearance this season after coming on for the injured Ben Foster at Liverpool in April.

Taylor had been the No.2 to Foster but shoulder and knee injuries restricted his availability, and Doyle stepped forward to the first team squad.

There is also a one-year option on Taylor’s contract and Blues are currently in talks with him about his future.