The Scot now appears on his way to Turkey's Bursaspor.
"The club pulled out all the stops in an attempt to bring the Scotland international striker, who attracted offers from several top European clubs, to St Andrew's.
"However the offer from Bursaspor proved to be too good for Miller to turn down and the 31-year-old has now decided to undertake the next chapter of his career in the Turkish Super Lig.
"The Glasgow Rangers man was said to have been torn over the last seven days as he considered his future and the decision to turn down the chance to link up with Alex McLeish again came as a very difficult one.
"Despite this unavoidable set back, Blues fans can rest assured that the Board and management team are continuing in their efforts to further complement the playing squad."