Steve Bruce admits there is "a lot of work to be done" to revive Birmingham's hopes of signing Tottenham striker Mido in a £6 million deal.
However, the Blues manager is more hopeful of signing Mido's Spurs team-mate Hossam Ghaly after holding talks with the player yesterday.
One of the stumbling blocks with the Mido deal is believed to be a buy-out clause in the contract which would permit the Egyptian international to quit St Andrews should another club offer a certain amount of money.
Bruce said: "It does look as if we are drifting away (with the Mido deal). I've really tried my best, the club have tried their best and we will attempt to persevere with it.
"But there is a lot of work to be done and we might have to look elsewhere, which would be a shame - but you never know."
Bruce's interest in Middlesbrough striker Yakubu has also been well-documented this summer and he may revive his interest if the Mido deal collapses beyond repair.
Ghaly would cost City around £3 million and Bruce admitted: "We had meetings all yesterday and negotiations are ongoing. I'm hopeful on that one but again we will have to wait and see."