Celtic boss Neil Lennon believes David James' decision not to uproot his family meant he could not join the club.
Lennon identified James as an excellent replacement, however, the veteran has now opted to sign a one-year deal with Bristol City.
"I think (James' snub) is more to do with the family reasons and being sort of closer to home so that's why he chose Bristol City," he said on Sky Sports News.
"He would have been ideal for us in terms of experience, presence and charisma. He ticks all the boxes there. It's one of those unfortunate things in football.
"It's a genuine personal reason. It's nothing to do with money. I spoke to his personal representatives today. We wished them good luck with that."