Town's attempt to sign César Navas has collapsed after the club and player failed to agree personal terms. The Blues and Málaga had agreed a fee, believed to be in the region of £200k late last week.
Chief executive Derek Bowden told the club site: "We're naturally very disappointed, having agreed terms with Málaga, that Navas will not be joining us.
"Last Friday we seemed close to agreeing personal terms with the player but since that time he has decided to reject our final offer so that is the end of the matter."
Navas impressed the Town management during a trial spell with the Blues in pre-season but broke the third metatarsal on his right foot during the friendly at Crawley. The injury is expected to keep him out of action until early October.
Málaga are eager to offload the final year of Navas's La Liga-sized contract — his salary makes up a seventh of their overall wage bill — and achieve a fee in order to strengthen their side for the season ahead.
The failure to sign Navas is likely to see boss Jim Magilton move in for the Premiership defender he has been considering taking on loan before the transfer window closes on Friday.
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