BBC is reporting that Cardiff Blues will inform the Welsh Rugby Union they have withdrawn from the race to sign George North.
The 25-year-old will return to Wales at the end of the season on a national dual contract, meaning the WRU will pay 60% of his salary.
In December WRU chief executive Martyn Phillips said all four Welsh regions had shown interest in signing North.
Blues chief executive Richard Holland says North is a “quality player” but they want to strengthen their pack.
The region has decided to prioritise front-five signings before the 2018-19 season, given that props Taufa’ao Filise and Gethin Jenkins are 40 and 37 respectively, while hooker Matthew Rees is 37.