Hull City manager Nigel Pearson has conceded defeat in his bid to bring Liverpool defender Daniel Ayala back to the KC Stadium.
Ayala impressed during a three-month loan spell with the Tigers last season and an £850,000 fee had been agreed with Liverpool.
Pearson was optimistic of winning the race to sign the young Spaniard, despite the competition from other clubs.
Swansea City and Ipswich Town had been linked with moves for Ayala, who also undertook a loan spell at Derby County last term.
However, reports suggest Premier League new boys Norwich City are now set to complete a deal to take Ayala to Carrow Road.
Tigers chief Pearson did not reveal where Ayala will be heading, but simply confirmed his bid to land the 20-year-old had failed.
"I think that's dead in the water for us and we move on," said Pearson.
"We're always on the look-out to improve the squad but whether we can do that will depend on a number of criteria."
Meanwhile, the Tigers added Austrian winger Martin Pusic to their squad on a one-year contract earlier this week and allowed Kamel Ghilas to join Stade de Reims on a season-long loan.