Magilton is understood to have pulled the deal and is eyeing a swoop on Celtic for £500,000-rated New Zealand striker Chris Killen.
The recently-married Ameobi does not seem to fancy a move to Suffolk, knowing that he is free to talk to any club he wants to in January.
Ipswich Pull The Plug On Ameobi Deal!
So Magilton sees the former Man City forward, who has been away at the Olympics and appears to be surplus to requirements at Parkhead, the next option.
Magilton has also been frustrated in his efforrts to sign Portsmouth's David Nugent and Killen could be a cut-price alternative.