The Sporting Gijon midfielder was all set to join the Midlanders for around £2.5 million
It is possible that Alex McLeish could attempt to resurrect the move in January, armed with a much-enhanced transfer kitty, but the playmaker appears settled in La Liga.
Birmingham are up to ninth in the table after a fine run of form but Michel does not believe he is missing out.
"I'm very happy here," he stated. "I still have this year and another and I look forward to many more at Sporting.
"At times, I think about the Premier League because it's a pretty major league. It has nothing to envy the Spanish league but I'm very happy in my team at Sporting and the Primera Liga. I prefer this.
"No, no I do not ever look at the league table out of curiousity and see where Birmingham are in the standings.
"I just focus on my own game and Sporting."
McLeish admitted one of the main reasons for the collapse of the transfer was due to the financial implications with the number of agents involved in the negotiations.
"We couldn't get the Michel deal over the line which is a shame because I believe he is a very good player who would have enhanced our team," conceded the City boss at the time.
"It would have been a much-needed boost to the squad if we could have got him in.
"The stumbling block has been about money, about payments and the way they are made, agents, everything came into it."
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