Keane has struggled for first team football at Spurs this season
Birmingham have backed out of a deal to sign striker Robbie Keane from Tottenham because "financially he wasn't the best option available".
The decision on Keane, 30, was taken after a meeting between acting Blues chairman Peter Pannu, boss Alex McLeish and chief scout Paul Montgomery.
"This is unfortunate because Keane is a class act," said Pannu.
"But supporters can rest assured we are considering other options and will pursue them where financially viable."
Birmingham are understood to have had a £6m bid for Keane accepted by Tottenham with an initial £4m to be paid up front and an extra £2m coming via various add-ons.
The Republic of Ireland international, whose first-team chances at White Hart Lane have been limited to 11 of his 13 appearances this season coming as a substitute, had been targeted by McLeish to bolster his misfiring attack.
Only Wigan have scored fewer than Birmingham's 21 Premier League goals this term.
Midfielder Craig Gardner is the club's top-scorer with five goals while strikers Nikola Zigic, Kevin Phillips and Cameron Jerome have contributed a meagre eight goals between them.
Keane, who re-signed for Tottenham in February 2009, only six months after leaving the north London club for Liverpool, spent the second half of last season on loan at Celtic and has also been linked with a move to West Ham.
"I met with Alex and Paul to discuss some new targets - names that we will not be mentioning at this moment in time - as we have decided that the signing of Keane would not be in the best financial interests of the club," explained Pannu.
"Everyone knows he is a tremendous player but having considered the overall package [one which certainly wasn't unfair on the part of his representatives to ask for given his talent and experience], Keane's age and the length of contract we felt that financially he wasn't the best option available."
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