Celtic interim manager Martin O'Neill says it is "unlikely" that striker Kyogo Furuhashi will return to the club.
The Parkhead club made a loan enquiry with Birmingham City over a potential deal.
Speaking ahead of Saturday's match against Dundee Utd, O'Neill was asked about the situation and said: "I would have said that would probably be unlikely.
"There is a viewpoint that he wants to really prove himself at Birmingham, which is no surprise."
Your Site News reported on Thursday that the player was seen as a valuable member of the Championship club's squad, despite not scoring in his 23 league appearances so far.
The 30-year-old left Celtic last January when he signed for Rennes for £10m, after being advised by Japan boss Hajime Moriyasu that he should join one of Europe's top five leagues to be considered for the World Cup this summer.
He was frozen out at Rennes and joined Birmingham in a deal worth £10m last summer.
O'Neill returned to Celtic on Monday for a second spell in interim charge following Wilfried Nancy's sacking after he lost six of his eight games in charge.
The Hoops have already signed until the end of the season, but the 73-year-old insists they are doing all they can to strengthen the squad much further this month.
"Doing plenty of work on it, seriously," he added.
"I know that's a big generalisation. We are doing that there and hopefully try and get a few players in.
"There's a lot of work going on. We are well aware that we have to supplement the squad."
