Birmingham City boss Alex McLeish has been forced to abandon his bid to bring in Sporting Gijon midfielder Michel.
McLeish has spent the past few weeks trying to agree a deal for Michel, who impressed in a pre-season friendly between the two clubs.
The Blues chief had asked his board for more money to fund a swoop for the 23-year-old and was optimistic a deal could be completed.
However, McLeish has now confirmed that Michel will not be heading to St Andrews before the transfer window closes due to financial reasons.
McLeish said: "We couldn't get the Michel deal over the line which is a shame because I believe he is a very good player who would have enhanced our team.
"It would have been a much-needed boost to the squad if we could have got him in.
"The stumbling block has been about money, about payments and the way they are made, agents, everything came into it.
"The club had stated their stance on it from day one and they haven't wavered on that. We were hoping to tidy things up at the Sporting Gijon end, but it wasn't to be."
Reports suggest McLeish may now try to sign Real Betis midfielder Achille Emana on loan before the 5pm deadline.