Coventry are the latest team to be in talks with in-demand Dan Fox - as Colchester have admitted defeat in signing the left-back.
The Sky Blues have had a bid accepted for the Walsall defender, who has also been linked with Wolves and Leeds.
But Fox will definitely not be joining Colchester, who had an undisclosed bid, thought to be £350,000, accepted by Walsall earlier this month.
The news comes after the player met with Colchester manager Geraint Williams and chairman Robbie Cowling last week.
Williams told the club's official website: "We have had contact from Daniel's representatives and they have told us he has decided not to join Colchester United."
Speaking of the latest interest in Fox, a statement on Walsall's official website said: "The club has accepted a bid from Coventry for Daniel Fox.
"The left-back has been given permission to speak to the Championship club."
The 21-year-old signed for Walsall on a free transfer from Everton in July 2005. He has made 27 league and cup starts - with one substitute appearance - this term, scoring three goals.