Coventry have failed in their attempts to take Wolves striker Freddy Eastwood to the Ricoh Arena.
The Wales international had topped Chris Coleman's summer shopping list and held discussions with the club regarding the terms of a possible contract.
However, that deal has now hit a stumbling block and the Sky Blues must turn their attention elsewhere if they wish to bolster their attacking options during the close season.
Out-of-contract forward Clinton Morrision is believed to be one option, while Southampton's Grzegorz Rasiak remains a potential target.
Club chairman Ray Ranson expects the club to recruit new faces before the 2008/09 campaign gets under way but is disappointed to have missed out on Eastwood.
"Having worked on the Eastwood deal for several months we are disappointed that we have not been able to make it happen," he said.
"We had agreed all the terms both with Wolves and Eastwood's advisors but there was an issue with his existing contract at Molineux.
"We think we are well placed to add to the squad with the calibre and type of players we want to bring in. It is always in July that the transfer activity begins to hot up."