Boss Kieran McKenna says Jay Matete, who joined Sunderland from Fleetwood on deadline day having been linked with the Blues, was a player Town had spoken about but that no move was made for the midfielder.
Sky Sports News reported last Friday that Town had made a £650,000 bid for the 20-year-old and rumours regarding Blues interest continued to circulate on Monday, the final day of the transfer window.
McKenna says Matete was someone that had been talked about at Town but nothing beyond that.
"He’s a player that we are aware of and that we have spoken about,” he said. "I know that he played against Ipswich earlier in the season as well, so he is a player that we were aware of.
"The same situation with all players. There are funds and backing there from the club to make moves if we think that is the right thing for the club going forward.
"At this time, we thought we had good cover and good options in those positions, and after Tyreeq [Bakinson] came in on loan [from Bristol City], it wasn’t a position that we felt like we needed another body in. We’re happy with what we have in those positions.
"Obviously, players move between clubs and we’re obviously a big club in this division and in the country, and we get linked with a lot of players.
"Our name is probably involved with any player that moves at this sort of level and obviously our name was involved with that player as well, but there was no movement on that one from us in January.”
Londoner Matete signed a four-year deal with the Black Cats, a deal having been agreed with the Cod Army late on Monday.