Everton have pulled out of off a deal to sign Sean Davis from Premiership rivals Fulham after the midfielder failed to complete a medical today.
Davis, a former England under-21 player, picked up a knee injury in a pre-season friendly and a scan revealed that the 23-year-old would not be fit before the transfer window closes next weekend.
"After close inspection it is apparent that Sean Davis is presently unable to complete a medical prior to the close of the transfer window," Everton manager David Moyes told the club's website.
"With that in mind, we are not able to complete the transfer at present."
Davis handed in a transfer request at the beginning of August, telling Fulham he wanted to leave the London club to "further his career". He was a driving force in Fulham's promotion in 2001 and earned a call up to the senior England squad last season.
Davis visited Goodison Park on Friday and completed one half of his medical, and returned today for a crucial scan on his knee.
But the results of that made it clear he will be out of action for a month, meaning Everton reluctantly pulled the plug on the deal.
Moyes will now re-double his efforts to bring in a top-class midfielder this week and could turn his attention fully to Rangers skipper Barry Ferguson.
Fulham were unwilling to allow Davis to move north on loan and to recover his fitness on Merseyside. They wanted a straight cash deal immediately, having accepted identical £5.5million offers from both Everton and Middlesbrough.
Now Davis finds himself in limbo having handed in a transfer request. Moyes may well be prepared to go back for the midfielder in the New Year transfer window, but he will be unable to complete a deal for the player before Sunday's deadline.
His priority would now appear to be Ferguson, and he said: "He is a player I have long admired and we are interested in him."
With local rivals Liverpool claiming they have not made a bid for Ferguson, Moyes could now locked in a battle with Blackburn for the Scottish international's signature. He added: "I am trying my utmost to get some new faces in this week before the deadline, and I am trying to do as much as I can.
"Barry Ferguson is not just a flyer, we have got an interest in him and I have done for months and months, and he's another name who I would love to have here."
Midfielders Thomas Gravesen, Lee Carsley, Scot Gemmill and Steve Watson are suffering from injuries so the need for more players in this department is obvious. Moyes has also been linked with Mexican international Gerardo Torrado, who could have a trial this week.
But the fact that the Seville player is a non-EU passport holder and would need a work permit is a major stumbling block. The chances of getting a permit before the deadline would be very difficult for Everton. Claims that Everton are prepared to take the 24-year-old on a year's loan appear to be wide of the mark.
Moyes said: "I keep hearing about a Mexican coming, but when he's here and he performs I will let people know if he's any good."
Sporting Lisbon keeper Nelson has returned to Portugal and Rennes midfielder Philippe Delaye is still undergoing a trial at Bellefield training ground with no decision taken yet. Everton are expected to field the same side who beat Fulham for visit to Charlton tomorrow night if Watson passes a late fitness test on a foot injury.