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Transfer news: Birmingham reject £5m bid for Demarai Gray from Bournemouth

Image: Demarai Gray - fifth Bournemouth bid rejected

Birmingham City have rejected a £5m bid from Bournemouth for Demarai Gray, according to Sky sources.

The cash bid was promotion-chasing Bournemouth's fifth attempt to sign the highly-rated youngster in the transfer window.

Sky sources understand City are holding out for a fee of between £7m and £8m for Gray.

Gray, 18, is contracted to Blues until 2016 and the club have offered him a two-year extension. 

He had scored four goals in 25 games this season, including a hat-trick in December's 6-1 win over Reading and has earned rave reviews for his dribbling skills and ability to create chances for his team-mates.

Gray, who first joined Birmingham as a 10-year-old, has helped the team rise from 23rd to 11th in the Championship table but has still made just 18 starts for the club.

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Boss Gary Rowett last week said: "There had been a lot of speculation about him. I have had lots of conversations with him recently, he has never once told me that he is keen on leaving the club."