The English Championship side had lodged a second, improved bid for the Hibs striker but the offer of close to £3m by the time adds on had been paid out, was shy of the Easter Road club’s valuation for the player they signed from Dunfermline in the summer.
With The Blues unwilling to raise their offer, matters have reached a stalemate and Nisbet, who still has more than three years to run on his contract, is now expected to remain with the Leith club until at least the summer.
With 13 goals in 30 appearances, the 23-year-old has been a key player for Jack Ross’ men, who sit within touching distance of second place in the Premiership and remain on course to qualify for European competition next term.
That form, in his first season in the top tier, has seen Nisbet touted for a Scotland call-up and captured the attention of clubs south of the border.
Sunderland were credited with an interest as this month’s transfer window opened but it was Birmingham who made a move.
The Easter Road club knocked back the original offer, thought to be in the region of £2m, but after successfully signing Sam Cosgrove from Aberdeen, Birmingham manager Aitor Karanka made it clear that Nisbet remained high on his list of targets and the club increased their bid for the promising young star.
However, with the transfer window due to close on Monday night, and little time left to recruit a replacement, Hibs have decided the financial return does not outweigh the value of Nisbet’s on-field contribution in the ongoing battle to finish as high up the Premiership table as possible.
Manager Jack Ross had left Nisbet, along with fellow transfer target Ryan Porteous, on the bench as Hibs defeated Dundee United on Saturday but, speaking afterwards, he said that he expected both to still be part of his plans on Monday.
“The club has its valuation and is conscious of where we’re trying to get to this season and how that affects it, particularly so late on in a window.
“I would expect them to be with me on Monday. That’s where I think it’s at.”