Blues pull out of race to sign Charles N'Zogbia

Birmingham today withdrew from the race to sign Wigan winger Charles N'Zogbia.

Blues' offer of £8m, plus add-ons, for the versatile Frenchman was rejected by the Latics last week.

Athletic are understood to want closer to £15m for the 24-year-old but Blues vice-chairman Peter Pannu said City are unlikely to pay over the odds for the former Newcastle man.

"We have had an offer rejected for the player and our valuations are different," he said. "We don't think it's right to go any higher at this stage so therefore we withdraw."

There is interest from several clubs but only Blues have gone in with a firm bid for N'Zogbia, who joined Wigan in a £6m swap deal involving Ryan Taylor in January 2009.

The is understood to be keen on a move to St Andrew's but the stalemate will only be broken if Wigan decide to bite the bullet and re-open negotiations with Blues.

Manager Roberto Martinez is keen to add to the ranks and knows he would be better placed to remould the side, using cash from the departure of any of his N'Zogbia, Hugo Rodallega or Maynor Figueroa. Rodellega is reportedly a target of Martin O'Neill at Villa.

Blues have already shelled out £12m on goalkeeper Ben Foster from Manchester United and Valencia striker Nikola Zigic. And if they spend another £5m they will have spent more than the last three summer transfer windows combined.

McLeish has scope to go after free agents over and above his designated budget. But it appears Rangers' Kris Boyd is not heading for St Andrew's as the Blues boss' interest has cooled.

Bobby Zamora remains a possibility but Villa and Sunderland have now entered the reckoning and could be viewed as more likely destinations now should Fulham fail to resist overtures.