West Ham chairman Eggert Magnusson has criticised Newcastle over the collapsed Kieron Dyer transfer and said the Magpies must have been 'embarrassed' at their handling of the deal.
Dyer's move fell through after Newcastle, having initially agreed a £6million fee, raised the cost of the player by £2million.
Magnusson, who also outlined his ambition for West Ham to break into the top four of the Premier League within four years, said he was amazed at the sudden price increase.
He told PA Sport: 'The fact that Newcastle moved the goalposts in the middle of the game is not how to do business.
'They had given us permission to speak to the player, he had had a medical and we had agreed a fee when we received a phone call that they wanted £2million more for the player.
'We could not believe it and I think some of the people there seem to be a little bit embarrassed.
'But I think the deal is now gone and I feel very sorry for the player, he wanted a move, he wanted to come closer to his family in Ipswich and now that has gone.
'I think this business with Newcastle has shown that we are not prepared to pay any price that a club puts on a player. If there are perceptions that we will do that, they are not correct.'
Magnusson did make clear however that other players could be on the way t Upton Park before the transfer window closes as West Ham have their sights set very high.
Magnusson added: 'The club have ambitions and we want to break into the top four within the next few years and we have to invest money - it doesn't happen otherwise.
'Those are our ambitions and that we believe they are entirely realistic otherwise I would not be here today.
'We are going to have a new stadium and that is something we are going to make happen, hopefully by 2011.'
The Icelandic businessman said he had complete faith in manager Alan Curbishley being the right man to take West Ham forward.
Magnusson said: 'There is no question in my mind that he has got what it takes to get us to where we want to go.
'He is West Ham through and through but it's also a big challenge for him.
'He has come to a bigger club after many years at Charlton and he now has much more money to spend than ever before.'
Magnusson admitted that the first season had been a roller-coaster.
The Icelander added: 'Every morning there seemed to be something new to deal with.
'There was the Carlos Tevez business, the fight against relegation, it has been an ongoing battle but we are looking for a fresh new start with a new promising season.
'Staying in the Premier League was the best thing about it and the emotions were very special for sure. There is enormous excitement at West Ham now - and also back in Iceland - for the new season.'