The Sporting Gijon midfield man is set to join Toulouse for £2million after rejecting a move to Upton Park after the Hammers made an enquiry earlier this week.
This news came just 24 hours after West Ham failed to gain a work permit for striker Duvan Zapata and so have given up on signing the Colombian.
Co-owner David Gold tweeted that he was in Spain on business this week suggesting that the East London club are in talks with a club over a much needed addition to the squad.
New permanent signing Andy Carroll is doubtful for the start of the season and so a striker is Allardyce’s priority with Modibo Maiga currently the only fit first team forward.
After a double blow in the transfer market, West Ham are hopeful of a new signing possibly joining them on their tour in Germany after the weekend.
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