The Finnish striker is on loan from Chelsea until January and Birmingham are eager to extend the deal until the end of the season.
After scoring 4 goals in his 6 Premiership matches so far this campaign, its no wonder City manager Bruce is eager to stiker a permanent deal for the 22 year old.
O'Leary's comments sparked speculation he would revive his efforts to land Forssell when the transfer window reopens in the New Year although Blues reacted furiously to the news by claiming Villa would be the last club the hit-man would join.
"I haven't heard anything about that," said Forssell of Villa's interest.
"Of course, it's always flattering when a big manager and club are interested in you.
"But I am just concentrating on Birmingham and taking it game by game. I've not really thought about my future that much.
"Hopefully everything will continue to go well here and then we'll see what happens.
"I am really happy at Birmingham and we are doing well as a team. I'd be quite content to stay here for the rest of the season, if that's what Chelsea allowed."
Meanwhile, Birmingham have been linked with a £3 million January swoop for Forssell's Chelsea colleague Jesper Gronkjaer.