Ipswich captain Matt Holland has rejected a Stg£4.5 million move to Aston Villa, according to the player's agent.
The clubs had agreed a fee for the Republic of Ireland midfielder but Jonathan Barnett revealed that Villa had to increase their personal terms considerably for Holland to agree to the switch.
Barnett met Villa chairman Doug Ellis and finance director Mark Ansell yesterday but confessed they were "miles apart" over figures.
He told the Birmingham Evening Post: "We had a very amicable chat. They were very understanding of our position and I was very understanding of theirs.
"For Matt to move to Villa a lot of things need to happen. Matt was very flattered by their interest, as I was. I was very impressed with Villa and I conveyed that to Matt.
"But we are miles apart. Perhaps they will now have a chat among themselves and come back with something else."
The 28-year-old, who played just three minutes of the Republic's game against Finland last night, had appeared reluctant to leave Ipswich, where he has four years of his lucrative contract remaining and has a young family settled in Colchester.
Villa boss Graham Taylor, meanwhile, has insisted he will not make any panic moves into the transfer market as he bides his time over a double swoop for Holland and Charlton's Mark Kinsella.
Taylor was in negotiations with midfielder Kinsella following the player's return from international duty with the Republic and his arrival looks more straightforward with the Addicks confirming they had received an inquiry from Villa for the 30-year-old.
Taylor admits Villa are desperately short of midfield players following the departure of George Boateng and Paul Merson a few weeks ago.
Taylor, however, does not envisage signing either player before the weekend.