Birmingham boss Alex McLeish has admitted defeat in his bid to sign AZ Alkmaar striker Moussa Dembele.
McLeish has also decidced not to pursue his interest in veteran Juventus midfielder Mauro Camoranesi. But the former Scotland boss is optimistic of bringing in new blood in the next week.
"Dembele has got other options and he is choosing another option. His representative had told me that," said McLeish.
"It is a blow because we have worked hard on that one - but that's life."
As regards Camoranesi, McLeish said: "I have always been a big admirer but negotiations became protracted and I had a further think.
"I decided it was not quite the way forward for Birmingham at this particular time."
McLeish, who has also been linked with Wigan's Charles N'Zogbia, added: "We are looking at one or two things and I'm confident we will have players in by the second game of the season rather than the first one at Sunderland."