The Championship side have revealed that they were unable to meet the Rovers strikers wage demands and so they are now seeking to sign an another striker.
"We made what we felt was a very lucrative offer to Franny and it was an offer that could exceed what he is earning at Blackburn, who are obviously a Premiership club," Ipswich chairman David Sheepshanks told his club's official website.
Ipswich Pull Out Of Jeffers Deal
"But unfortunately, despite our extensive efforts, we have not been able to match what the player wants financially from the deal.
"We have a duty to protect the wage structure at this Club and will not put that at risk. The offer we made to Franny was a very good one in line with his status, however, now we move on.
"The positive news is that I can confirm that we have now made an offer to another player."