Sullivan did, however, say that he hoped that the England international midfielder would become a Blues player eventually. "We agreed a fee with Manchester United and we thought we were very close to the wages the player wanted, but it is a big decision for him and he wants to stick it out at United until the summer before deciding what he wants to do. "From his point of view, to have been at a club for his whole career and then rush a move through in a few days is very dramatic, and he wants more time to think about it. "I hope he will become a Birmingham City player eventually but it is a non-runner at the moment. It has broken down. "We were very close to matching the wages he is on at Manchester United and we were offering him a longer contract. I don't think that was the stumbling block."
The Blues co-owner, speaking on BBC Radio Five Live on Friday night, said: "I would say we are not close at all to a deal for Nicky Butt.
"We did agree a fee but it was the player's decision, which we respect him for.