Aston Villa are understood to have rejected a £4million bid from Bolton for central defender Gary Cahill, who is also wanted by Birmingham.

Wanderers manager Gary Megson is believed to have tabled the bid to sign Cahill earlier in the week.

But Villa turned down the offer - as they had previously from local rivals Blues. Cahill has just returned from a successful three-month loan spell with championship side Sheffield United.

The 22-year-old has slipped down the pecking order at Villa Park after the arrival during the summer of Curtis Davies from West Brom and Zat Knight from Fulham.

Villa boss Martin O'Neill confirmed earlier in the week that he had received no bids for Cahill which matched his valuation of the player - believed to be in the region of £5million.