Birmingham boss Alex McLeish has ended his pursuit of Mauro Camoranesi and has also admitted defeat in this bid to sign AZ Alkmaar striker Moussa Dembele.
The Premier League club had been in touch with Juventus' Camoranesi, according to the midfielder's agent, earlier in August.
But as he prepares for Saturday's Premier League opener at Sunderland, McLeish has decided not to follow up his initial approach for the 33-year-old.
The Birmingham boss said: "I have always been a big admirer (of Camoranesi) but negotiations became protracted and I had a further think.
"I decided it was not quite the way forward for Birmingham at this particular time."
Meanwhile, Dembele appeared favourite to move to St Andrews in a £5million deal, despite reported interest from West Ham and West Brom.
But McLeish said: "Dembele has got other options and he is choosing another option. His representative had told me that.
"It is a blow because we have worked hard on that one - but that's life."
But the former Scotland boss is optimistic of bringing in new blood in the next week and he has been linked with Charles N'Zogbia, who has reportedly handed in a transfer request at Wigan.
McLeish added: "We are looking at one or two things and I'm confident we will have players in by the second game of the season rather than the first one at Sunderland."