Eastwood has not scored for Wolves since August 2007
The proposed £1m transfer of Wolves striker Freddy Eastwood to Coventry City has collapsed.
Eastwood, 24, had talks with the Sky Blues about signing a four-year contract after a fee had been agreed with Wolves.
But Coventry chairman Ray Ranson said: "Unfortunately the deal collapsed because of money the player is legally entitled to from Wolves."
Coventry offered to pay half the sum but Wolves were unwilling to match it.
The Sky Blues have now turned their attentions towards Republic of Ireland international striker Clinton Morrison, who looks likely to leave Crystal Palace.
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