The former Wolves centre-back is reported to be favouring a return to the Championship leaving McCoist to go after Bosnia international Boris Pandza and French-Tunisian utility Bilel Mohsni.
"The deal for Berra is off, I think he is going to a Championship club," said McCoist after a 2-0 friendly wino ver Brora Rangers.
"We're still talking to Pandza's agent and I've spoken to the player. There's still a long way to go but he is a player we're interested in.
"I was very happy with Mohsni. He came in with Emilson Cribari so there was a bit of experience there. He looked very comfortable in the first half.
"He (Mohsni) has fitted in with the lads and is enjoying himself but I've not made my mind up yet.
"I spoke to Paul Sturrock who had him at Southend, as well as big Sam Allardyce at West Ham, who is interested, and Ian Holloway at Crystal Palace, as they know the lad as well. They all gave great reports.
"It's not rocket science. If clubs come in and offer big wages then we'll be up against it. But he knows we're a big club and are developing as a team. We will just have to wait and see what happens."