TWTD understands that talks with midfielder Luke Hyam regarding his new Town contract have broken down.
Hyam’s current terms have an option for a further season after the current one, which manager Mick McCarthy reiterated that Town will be exercising on Thursday when he said new contracts for Hyam and Tommy Smith - who has also had an option for anorher year taken up - would be looked at in the summer.
The Blues previously began talks regarding a longer-term deal with the midfielder’s representatives in February but after several weeks of discussions the two sides reached an impasse having been unable to agree the terms of a new contract.
The 24-year-old is understood to be keen to stay with his hometown club, having come through the Blues academy before making his senior debut at Middlesbrough on the opening day of the 2010/11 campaign.
Hyam, who missed today's draw at Sheffield Wednesday as he was suspended following last week's red card against Brentford, has now made 110 starts and 16 sub appearances for the Blues, scoring three goals.
The former Northgate High School pupil spent time on loan at Rotherham earlier in the season, while other Championship clubs are believed to have shown interest in the past.