Blues have reportedly made bids to Tottenham for Pavlyuchenko and manager Alex McLeish has made no secret of the fact that he would like to sign the Russian striker but after the match against Spurs on Saturday he said the 'deal is dead in the water'.
"It looks like the deal is dead in the water for Pavlyuchenko," the Blues boss said after the 1-1 home draw against Spurs on Saturday.
"It looks like we are not going to get the trophy signing we thought we might. But I think we have offered enough.
"We may now try and get a trophy signing on loan with a view to a permanent deal in the summer.
"We are in a position where we don't need to break the bank with Carson Yeung's money."