Tottenham midfielder Hossam Ghaly will not be completing his £3m transfer to Birmingham City.

The Blues announced on Monday that they had agreed a fee for the Egyptian, subject to him obtaining a work permit, and he was expected to sign a three-year deal with a further two-year option.

The news follows on from the collapse of the deal to sign another Egyptian Spurs player, Mido, for £6million.

A statement released by Birmingham this afternoon suggested the club pulled the plug on the deal, but Spurs claim the player decided against the move.

"Birmingham City Football Club can today confirm that they will not be proceeding with the transfer of Hossam Ghaly from Tottenham Hotspur due to footballing reasons," a Birmingham City statement read.

Spurs, however, claim on their website that "Hossam Ghaly has decided not to proceed with his transfer to Birmingham City."

Blues manager Steve Bruce was unavailable to explain the reasons behind why the plan to sign 25-year-old Ghaly had been abandoned.

It remains to be seen whether he remains at Spurs or is the target for another club.

Ghaly spent three years with Feyenoord before he moved to Spurs in January 2006. He has so far made a total of 34 appearances for Spurs and scored three goals.