Striker Kayden Jackson is reported to have turned down a new contract with the Blues.
According to Football Insider, Town offered a new improved deal which the 26-year-old has rebuffed.
Jackson, who joined the Blues from Accrington Stanley for £1.6 million in the summer of 2018, is said to have been eyed by a number of Championship clubs.
We understand Tony Mowbray’s Blackburn Rovers showed interest in January, while Coventry City have been linked and League One Peterborough were reportedly keen having come close to signing him prior to his move to Portman Road.
There were reports earlier in the year that talks regarding new terms had got under way, however, they were understood to have stalled prior to the start of the coronavirus pandemic.
Jackson, Town’s joint-top scorer on 11 in 2019/20 alongside James Norwood, is currently contracted until the summer of 2021 with the club having an option for a further season so there is no immediate hurry to tie the Bradford-born frontman down to extended terms.
The striker, who returned to Playford Road for the start of pre-season training last week, is understood to be happy at the club and in no hurry to move on.
Meanwhile, Bristol Rovers manager Ben Garner says he’s hopeful striker Jonson Clarke-Harris, reportedly a Town target, will sign a new deal at the Memorial Stadium.
"We’ll see how we go through pre-season and into the season but I’m hopeful he wants to stay, we want him to stay and build on what he’s done so far at this club,” he told Bristol Live.
"There are discussions that have taken place and they will continue over the next few weeks. We need to see where that goes.”
Rovers were previously reported to want a fee of £700,000 for the 26-year-old, whose current Rovers deal is up next summer, which would almost certainly put Town out of the running barring a significant sale this summer.
Elsewhere, former Blues midfielder Lee Martin, 33, has joined National League South Ebbsfleet having left Exeter at the end of the season.