BIRMINGHAM City have ruled themselves out of the running for Wanderers’ prized asset Zach Clough.

The Blues had joined Championship rivals Huddersfield Town and Sheffield Wednesday in asking about the young striker looking to take advantage of the financial chaos at the Macron Stadium.

Figures as low as £750,000 were touted for the 20-year-old, who has been tracked by a number of Premier League clubs in the last 12 months, most notably Everton and Watford.

But sources in the Midlands now suggest Gary Rowett’s side have backed away from the deal and will not be pursuing it any further.

Wanderers are facing up to the prospect of selling players as they may need to fund a £2million tax bill, due on January 18, from their own pocket should a takeover prove unsuccessful by that stage.

It is believed, however, that negotiations have progressed in the last couple of days with more than one interested consortium.

One of the factors seemingly holding up the deal is the prospect of future claims from HMRC over tax and PAYE – with owner Eddie Davies keen to see that he and other members of the board do not remain liable for payments.

While talks remain at a delicate stage there is a degree of optimism around the club that a deal can be reached. But that has not stopped the board investigating all their options, which include the prospect of voluntary administration.

Wanderers fans will also meet at the Macron tonight to discuss the possibility of a Supporters’ Trust which could also play a potential role at board level if the circumstances were right.

That means the pressure to sell Clough, or Josh Vela who has attracted interest from Cardiff City, is not immediate as they are not among the bigger earners in the squad.

Neither Clough nor Vela are pushing for a move away from Bolton.

Neil Lennon will have to curb costs, however, and both Dorian Dervite and Dean Moxey are wanted by Wolves.

Kenny Jackett is hoping to sign Newcastle United’s Mike Williamson but the Molineux club is struggling to meet his wage demands. Dervite would be an option if they step away.

Moxey is wanted to a handful of Championship sides, including Bristol City, and has become a key member of Lennon’s squad in recent months.

Mark Davies is another player who would represent a sizeable chunk off the wage bill and command a transfer fee.

Meanwhile, Dan Lavercombe, the Torquay United goalkeeper who spent time on loan at Wanderers at the end of last year, has signed for Wigan Athletic. The 19-year-old has gone back on loan to Plainmoor as part of the deal.