Town, who this morning will make Leicester's Gareth McAuley their second signing of the summer, have failed in a bid to sign Burnley striker Kyle Lafferty. Clarets chairman Barry Kilby has revealed that the Blues came in for the Northern Irish international, who is set to join SPL giants Rangers.
That deal will see Burnley receive £3 million plus midfielder Alan Gow, a player Town were interested in during the January transfer window, if the former Falkirk man agrees to the switch.
Kilby says Town's offer for 20-year-old Lafferty also included a player but was lower than the terms agreed with Walter Smith's club: "We received three cash-plus-player offers from other clubs - Ipswich came in late - but all considerably below this one.
"It's a good price when you are buying potential rather than the finished article."
The identity of the player Town offered to the Clarets as part of the proposed deal for Lafferty is unknown, although in January Burnley were very keen on signing former striker Alan Lee.
The Blues had initially approached the Lancashire club regarding a deal which would have seen Lee and a cash fee move to Turf Moor and Andy Gray join Town. Gray eventually joined Charlton Athletic with his personal terms reportedly above and beyond what the Blues were willing to pay.
Meanwhile, former Blue Darren Bent is being linked with a move from Spurs to Celtic.
Elsewhere, Nottingham Forest midfielder Sammy Clingan has agreed to join Norwich City on a Bosman. Northern Irish international Clingan had also been linked with the Blues and a number of other Championship sides.