Birmingham have confirmed that they have rejected an offer from Liverpool for Jermaine Pennant.
The Reds are keen to land the former Arsenal winger, but Blues are standing firm over their valuation - believed to be over £5 million.
Birmingham chief Steve Bruce confirmed Liverpool had only bid £3.5 million for Pennant.
"We had an offer from Liverpool which we rejected and, until they meet our valuation of Jermaine Pennant, they will get the same answer," said Bruce.
"There's only been one bid, of around £3.5million. We paid £3 million for Jermaine plus we owe Arsenal 25% of any sell-on fee.
"We don't want to sell him for £3.5million, that's for sure.
"Now it's a question of how far Liverpool are prepared to go in meeting our valuation. If they don't then they will move on, I suppose."