Speaking to the Ipswich Evening Star, Rodgers said: "The interest has dwindled away now. I shall be looking to bring in players in the summer, and he is an intelligent player and could come back into my thoughts.
"Ipswich were interested in a double swap and you will have to ask them who our player was. But it appears all over for the time being."
It's likely that the Watford player to be involved in any deal was 22 year old central defender or right back Adrian Mariappa who has been linked to the Blues on a number of occasions in the past.
You can find a full player profile, and full career history on Harrow born Mariappa by clicking here.