Swansea chairman Huw Jenkins says Town's weekend FA Cup opponents have given up on signing Gavin Williams after the Blues put a £1 million price tag on the midfielder. Previous reports had indicated that Town wanted only £500,000 for the 26-year-old.
Jenkins confirmed his club's interest in the Welsh international but says the £1 million fee is beyond them: "Gavin Williams is one of various players we've enquired about this month, but, as far as I know, Ipswich are keen on keeping him.
"£1 million is the fee I was quoted for Gavin, which is excessive. There's no way we we're going to pay that sort of money for him."
Williams confirmed over the weekend that Jim Magilton has told him he can leave the club with the Amsterdam trip and other off-field matters the catalyst for the manager's decision.
Previous Welsh reports claimed Cardiff and Coventry are also eyeing Williams, but a £1 million fee is almost certainly too steep for either Championship side.
Meanwhile, reported Town target Andy Keogh has joined Wolves from Scunthorpe for a fee of £600,000 rising to £850,000.
Czech keeper Jaroslav Drobný, who was with the Blues on a short-term contract earlier in the season, has signed with Bundesliga side VfL Bochum until the end of the season after a trial.