Manchester City have abandoned their bid to sign German World Cup star Stefan Effenberg.
The First Division champions confirmed that they had been in talks with the 33-year-old Bayern Munich star, who will be available on a free transfer at the end of the season, but that he will not be moving to Maine Road.
City's chief operating officer Chris Bird said: "We can confirm that we have held discussions with Stefan Effenberg over the last few days, but he will not be joining us."
City refused to elaborate on why the deal had fallen through but it is understood they were not prepared to meet the German's wage demands.
It is understood Effenberg was demanding around Stg£60,000-a-week. This is more than double what the current top earner at Maine Road takes home each week.
Effenberg, who is also wanted by Galatasaray, had been one of manager Kevin Keegan's prime transfer targets for some time now and he maintains he would like to have two major signings in place before the World Cup.
Meanwhile Keegan claims Stuart Pearce could one day replace him as City manager. Keegan was having talks with Pearce, who quit playing at the weekend, at the former England defender's home and stud farm about a coaching role at City for next season.
Keegan claims the job will be open-ended and Pearce would be able to walk away at any stage if he wanted to take up another offer.
He said in the Manchester Evening News: "You never know, we could be sat here in five years' time and he could be replacing me. It's a possibility.
"Stuart has already been offered jobs and will continue to be offered jobs, we know that.
"If he gets the right offer and he wants to go we will just shake his hand and say thank you."