Southampton are reluctant to take Flynn Downes on loan as part of a deal for James Ward-Prowse, preferring straight cash as they hold out for £40million.
West Ham were hoping to include Downes in a deal for Ward-Prowse, knowing Saints were keen on him with their manager Russell Martin having managed the 24-year-old midfielder at Swansea.
Southampton, however, have indicated that they will only sell their captain in a straight cash deal.
Ward-Prowse remains one of the names on West Ham's long list of midfield targets – having also courted him last summer to no avail – though they value him at £25m, £15m short of Southampton's asking price.