WANDERERS have been forced to admit defeat in their chase of Watford winger Lloyd Dyer.

Neil Lennon had attempted to bring the former Leicester City man on board after missing out on Diego Fabbrini but was left disappointed yet again when the 32-year-old said he wanted to play closer to his home in the Midlands.

Birmingham City are now reported to be in talks with Dyer’s representatives, leaving Wanderers still without a completed signing more than a fortnight into the January window.

Lennon confirmed his interest in Dyer was not connected with Jay Spearing’s potential move to Vicarage Road – but that he had already moved on.

“It was a separate deal but I think it is dead in the water,” he told The Bolton News. “We are still working away in the background and we need to get bodies in, no question.

“We have a tough programme coming up. But the players are playing for me at the minute and they are giving me everything.”

Goals from Liam Feeney and Darren Pratley earned a first league win of 2015 for Wanderers at Sheffield Wednesday on Saturday.

Prior to kick-off, rumours had swept down from North of the Border that Kris Commons had played his last game for Celtic, and was heading to the Macron Stadium.

Indeed, the Parkhead favourite threw his boots into the crowd after the Hoops’ 2-0 win at Hamilton in what looked like a parting gesture.

But as Ronny Deila reiterated in Glasgow that the 31-year-old would be staying until the end of the season – joking that the player would need to find some new boots - Lennon also played down suggestion he had agreed a deal to bring Commons back to England.

"There is nothing on that,” he said. “Celtic have said he is not going and there has been no further movement, It is as it was.”

Commons is out of contract at the end of the season and yet to agree terms on a new deal.

It has been reported since October that Lennon has monitored the man who scored 32 goals for him last season to help clinch the SPL title, but with finances so tight at his new club, the Northern Irishman admits it would take something special to fund a deal now.

"If he was made available we would definitely be interested,” he said. “But it depends on what Celtic want to do in terms if there is a fee involved.

“If it comes to the fore we would have to sit down with his representatives. Is he of interest? Of course, he would be.”