In just over 16 months in charge at St. Andrew's, Bruce has taken the club into the top-flight after a sixteen year absence and done what many fail to do in their first season and keep the club there.
"I said at the start of the season that if Steve kept us in the division after coming through the play-offs it would put him among the best," co-owner David Sullivan told the B'ham Evening Mail.
"Steve has proven himself and we couldn't have asked for anything more of him this season.
"He probably thinks he's done well - as he has - and wants to sit down to talk about an enhanced deal.
"It is our intention to do that, we'll have a chat and come up with a longer and better contract for him."
Improved contracts are also likely to be offered to Bruce's backroom staff - John Benson and Mark Bowen.
