Pennant joined Birmingham from Arsenal in April 2005
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Birmingham have confirmed that they have turned down a £3.5m offer from Liverpool for winger Jermaine Pennant.
The 23-year-old has been linked with a move to Anfield after the Midlands club's relegation to the Championship.
Blues boss Steve Bruce said: "There has only been one bid of around £3.5m but we don't want to sell him for that."
A club statement said: "The two clubs have talked on a number of occasions but we are a long way off in our respective valuations of the player."
Birmingham managing director Karren Brady had insisted that Pennant would not be sold.
However, the statement revealed that the Blues may be willing to let him leave - if Liverpool were to raise their offer.
"Until Birmingham's valuation of the player is met, we will not consider a move for Pennant," the statement read.
Pennant completed a £3m switch from Arsenal in April 2005 after falling out of favour at Highbury.