City boss Steve Bruce tabled a £5.5million bid for the England star last week but Rovers were not happy with the method of payment.
A spokesman told Rovers' official website: "The Blues were reported to have tabled a club record £5.5million bid, but the problem was that only £3million of it came guaranteed.
"The remainder of it was dependent upon the Midlands club's survival at Premiership level over the next two seasons.
"Clearly, the prospect of being financially penalised by another club's failure did not appeal to the Ewood management."