The Reds have pulled out the race to sign Australia sensation James O'Connor.
The 20-year-old, who can play in a variety of positions across the back line, has attracted attention from a number of clubs.
And although the Rebels are among those who have not given up hope of signing O'Connor from Western Force, Reds coach Ewen McKenzie has admitted defeat.
"We've been contacted and he won't be at the Reds," he said. "Where he is going to be I don't know.
"I've always said it is difficult to get people to leave and move around.
"The longer it goes on, the less likely it is. I have always been, I guess, suspicious he wasn't coming our way for some time because it's been dragging on. I've been thinking more laterally for some time."