Harry Redknapp says Ravel Morrison is not at the same level he once was and Birmingham will not pay over the odds to sign him.
Birmingham had seen an initial loan bid for Morrison turned down by current side Lazio, but remained in talks over a possible deal.
“We made an offer, it was only a very small offer to Lazio because I feel Ravel is not quite where he was at, at the moment,” Redknapp said.
“He’s been great, he’s come in and trained well, worked hard, there’s not been a minute’s problem. But he’s not shown me he’s quite where he was.
“We’ve made an offer to keep him but it’s not a big offer. We’ll pay a part of his wages. If Lazio want to take the offer they can, if not he’ll have to go back there.”
Redknapp admitted there is “no one close” to signing for Birmingham at the moment
“It’s gone crazy,” said Redknapp, when asked about the state of the transfer market following Neymar’s proposed move to Paris Saint-Germain for £198m.
“Players that were £2m a few weeks ago are suddenly £4m, £5m.”
Redknapp, who has been famously pictured driving into training grounds late on previous transfer Deadline Days to complete deals, insisted he is planning on getting players into St Andrew’s well before August 31 this time around.
“I don’t want to be going like a lunatic on Deadline Day,” he said. “I’ll probably be driving in in the same car but actually getting players in I hope it’s done by then.
“There’ll always be a bargain, a free transfer. If you work the market there are always players that can do a job for you.”