Sam Allardyce believes West Ham have dropped their interest in Rangers striker Nikica Jelavic after finding a potential transfer 'too expensive'.
Rangers chairman Craig Whyte and West Ham chairman David Sullivan had held casual talks over the striker as the Hammers seek reinforcements to boost their push for the Premier League.
But Hammers boss Allardyce says they have been priced out of the race for the Croatian frontman, who is also being linked to Everton.
The West Ham boss told Sky Sports News: "If I'm led to believe where it is at the moment, for us it was too expensive.
"Too expensive - full stop."
Asked if the club had dropped their interest in the striker, he replied: "Yes."