Town boss Jim Magilton has confirmed that Cork City have turned down the Blues' second offer for George O'Callaghan. Town are not keen to pay more than their current offer of £50,000 plus appearance top-ups.
Magilton said: "We want George in the building but we will not budge at any price."
Cork are reported to want £50,000 at the end of O'Callaghan's contract in addition to a fee of the same amount.
Irish reports claim further talks are set for today with SPL side Dunfermline, the other party interested in the midfielder, wanting to be kept informed of developments.
Magilton has also confirmed his interest in strikers Steve Kabba and Dele Adebola: "We have made an enquiry to Sheffield United about Kabba but not a concrete offer. He has not been offered to us and we are monitoring the situation.
"With Dele, he is someone we like and wanted him before we got Jon Macken in but then left it. The situation has changed again and we may look at that again."
That changed situation may suggest talks regarding Macken's permanent move to the Blues from Palace have stalled. The former Manchester City man's high wages are widely understood to be the stumbling block stopping that move going through.
Meanwhile, Wigan right-back David Wright is reported to be a £200,000 Town target. The former Crewe man, 26, has had limited opportunities since joining the Latics in 2004 - when he was also linked with a move to the Blues - and even spent time on loan at Norwich in 2005.
As well as players coming in, it increasingly looks like one or two could be on their way out of Portman Road.
Striker Darryl Knights is expected to join Falkirk, while we understand Charlton may be interested in young defender Chris Casement. Scott Barron, without an appearance this season, also looks likely to leave.
Yesterday, boss Jim Magilton revealed interest in first team regulars Gavin Williams and Alan Lee.