Kris Boyd's move to Birmingham City from Rangers is ''dead'' and is unlikely to be resurrected, according to the Championship side's manager Alex McLeish.
Rangers striker Boyd looked set for a £3million-plus move to midlands club but McLeish revealed on Thursday the player and himself are ''miles apart'' regarding personal terms.
Ibrox boss Walter Smith earlier revealed he would welcome Boyd back if the move collapsed and that may now be on the cards.
McLeish said on Birmingham's official website: ''The situation is that we had some talks with Kris and his advisers yesterday and we were miles apart. 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.''
The stumbling block appears to be Boyd's wage demands and McLeish backed his own board's stance on the issue.
''I go along with the board because I felt it was a very fair offer and so there's a little bit of an impasse there,'' he said.
Boyd, the Clydesdale Bank Premier League's top scorer this season, arrived for training at Murray Park on Thursday morning, with his advisers still attempting to thrash out personal terms with Birmingham.
Smith confirmed a fee had been agreed for the 25-year-old striker - reportedly between £3.75-£4million - but insisted if the deal broke down, there was every chance the striker could stay.
Smith told his club's official website: ''There is that possibility. If they can't agree on the personal aspects, that is exactly what will happen.
''Currently, the clubs have agreed a fee and the player's representatives are in discussions with Birmingham with regards to personal terms of the contract - we await a decision from both of them as to what will happen.''
Sir David Murray's decision to sanction the sale of Boyd has sparked fears of a fire sale at Ibrox but Smith echoed his chairman's assertion that would not be the case.
He said: ''I think that chairman has made it quite clear that if we sold a player, Kris Boyd or any other, there would be no need for us to sell anybody else.
''That was clear in the articles he did this morning so if the deal does go through, then there would be no necessity for us to sell any other player.''
However, should the Boyd move break down, it appears the likes of captain Barry Ferguson, defender Madjid Bougherra and goalkeeper Allan McGregor would then be made available for transfer.