Reported Liverpool target Sebastian Larsson has failed to reach an agreement over a move to Newcastle.
The Birmingham midfielder had been widely expected to move to St James' Park during the transfer window, but Blues boss Alex McLeish has revealed a deal is unlikely to happen.
McLeish said: "Newcastle made a bid but I don't think Seb could agree terms so he is still a Birmingham player."
This apparent rejection from the Sweden international will serve as a boost to his other suitors one of whom - according to tribalfootball - is Liverpool.
Liverpool are known to be in the market for attacking reinforcements this month in order to transform their season. The Anfield club are just five points about bottom side West Ham and are in desperate need of more potent goalscoring threats.
Aston Villa winger is Ashley Young is reportedly on the Liverpool radar, as is Manchester City's Shaun Wright-Phillips as speculation mounts that the Reds will spend big in the transfer window.
However, Liverpool director of football strategy Damien Comolli has moved to calm rumours that their will be plenty of new recruits moving to Anfield.
"I will stick to what I said from the beginning: if [Liverpool boss] Kenny Dalglish is not happy with a player we think could make the team better then it's always down to the manager. That hasn't changed," Comolli said at a Liverpool press conference unveiling Dalglish.
"We didn't even have chance to talk about the transfer window yet. We have been working on it with Roy [Hodgson] and the owners but I need to update Kenny on what's going on.
"Will there be some activity? I don't know. I still don't know. It's a very complicated market in January."
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