Birmingham have released a statement claiming they are not involved in takeover talks with a consortium led by former QPR chairman Gianni Paladini.
Paladini stated earlier this week that an offer was made for Blues in excess of £12million, which was reportedly rejected by the Birmingham board.
However, the npower Championship club have now moved to quash any talk of discussions having taken place with the Italian.
An official statement said: "The Board of Birmingham City FC can clarify its position following recent media speculation regarding the ownership of the club.
"After comments made to the media, the club would like to place on record that there are no discussions taking place with any group associated with Gianni Paladini.
"A takeover bid was made to the board's lawyers by representatives of an undisclosed party, but this was summarily rejected."