West Ham won't pay Dyer hike as they face Sam's fury

Newcastle boss Sam Allardyce said his club "escalated" their valuation of the player at the last minute but added they were "upset" at the Hammers' behaviour.

Newcastle owner Mike Ashley blocked the £6million deal over the weekend after terms had been agreed and the player had undergone a medical.

Ashley, who had agreed a fee of £5m plus £1m of add-ons, apparently demanded another £2m. West Ham chairman Eggert Magnusson immediately called off the transfer and Dyer, desperate to move closer to his Ipswich roots, is now in limbo at Newcastle with no immediate prospect of a move.

It is understood the Hammers have no intention of paying the extra cash for the England midfielder and it seems the only way the deal could be revived is if Ashley moderates his demands for a player manager Alan Curbishley rates highly.

Allardyce said: "If Curbs started it, then we are more upset than they are, that is a fact.

"Why? That is confidential. He is not as upset as we are about West Ham.

"In the end, we decided he was undervalued. We escalated the valuation to what we thought was realistic and West Ham did not want to roll with it.

"Kieron is back with us, a top player with a squad who are growing. Will it be difficult for Kieron? It's life, isn't it? He has got a contract. You sign it. The length of the contract means you are employed by an employer, something happens, it doesn't work, you come back and get on with it.

"If anything else happens in terms of West Ham increasing their offer, then great. If they don't, then clearly they don't value him as highly as we do."

Dyer, who is said to be stunned by the latest turn of events, had agreed personal terms and had a stringent medical on Thursday.

By Friday morning, West Ham were waiting on the results of one final blood test and the player himself was poised to drive to the club's training ground when the news came through that the deal was off because of Newcastle's change of heart.

Curbishley said: "There is not much we can do about it. It's definitely off and this has never happened to me before. We are disappointed and so is the player."

The West Ham boss remains eager to strengthen his squad before the transfer deadline at the end of this month. He is keen on adding another striker, with Barcelona's Eidur Gudjohnsen one option.

Reading left back Nicky Shorey is another potential target, though Curbishley has been impressed by incumbent George McCartney, who kick-started the Hammers' comeback in Saturday's 2-1 win over Roma.

The kick-off had to be delayed 15 minutes to allow the crowd of more than 26,000 to enter, but it was Roma who took an early lead when Ludovic Giuly fired home.

McCartney equalised after 64 minutes and Dean Ashton, who replaced Bobby Zamora at half-time, scored the winner three minutes later.

Ashton could be on the bench for Saturday's Premiership opener against Manchester City, but Curbishley admitted: "The way Dean has come back has thrown a marker down."

Curbishley also said Magnusson has had a weight lifted from his shoulders following the conclusion of the Carlos Tevez transfer controversy.

"Eggert has looked a lot more relaxed and it is a great weight off his shoulders," he said.