It was thought that the England Under 21 international had signed a season long loan deal at St Andrew's but the club have confirmed that despite all parties wanting the loan deal to happen circumstances at this present time have meant that the deal cannot be concluded yet. "The position is presently on hold and will be reviewed shortly. "Birmingham City Football Club hopes that matters can be concluded satisfactorily before the transfer window closes, and the position should become clearer over the next few days."
A statement on the Blues official website www.bcfc.com reads: "To date a loan agreement has not been signed for Jermaine Pennant to join Birmingham City Football Club.
"Whilst Birmingham City wants to loan Jermaine Pennant and both Arsenal Football Club and the player wish this to happen, Jermaine Pennant's present circumstances are such that a loan agreement cannot be signed at the present time.
Pennant was reportedly arrested early on Sunday morning on suspicion of a drink/driving offence.