Birmingham admit they are unlikely to resurrect interest in Rangers star Kris Boyd after failing to agree personal terms with the striker.
Alex McLeish is keen to secure extra firepower in the January transfer window as his Birmingham side chase a place in the Premier League and Boyd was targeted.
It appeared that the forward, who was signed by McLeish during his time at Ibrox, was set to move to England in a £3million move, with a medical scheduled for Thursday.
However, McLeish has announced that the deal is 'dead' following unsuccessful discussions with Boyd, who has scored 20 goals in all competitions this term.
"The situation is that we had some talks with Kris and his advisers yesterday and we were miles apart," the Birmingham boss told the club's official website.
"And, as a result of that, the talks were concluded and there wasn't any agreement in place.
"We felt we had made a good offer and they're entitled to ask what they want and we respect that but that's it dead as far as I'm concerned.
"I've got to move on and it remains to be seen if it can be resurrected. At the moment it's unlikely.
"If somebody comes across my desk this afternoon, a player that I believe can make a difference to the team and it's within the parameters of the budgets, then I've got to move on.
"I have to do the best for Birmingham and for the Birmingham supporters."