Celtic are attempting to sign Simunovic from Dinamo Zagreb.
Celtic have had an offer rejected for Simunovic, according to the Daily Record.
The 21-year-old centre-back was the subject of a £4 million bid by the Scottish champions, but Dinamo president Zdravko Mamic would not accept such a low valued deal.
He said: “Yes, we refused Celtic. I’m glad that Jozo stays with us. His price and his quality will still grow big.”
Celtic are yet to decide whether to make a new approach for the defender, but with talks ongoing they are sure to retain their interest.
It is likely that Simunovic is being signed to provide cover for Virgil van Dijk, who is likely to depart Parkhead before the transfer window closes.
If the Belgian defender does leave for the Premier League, the Bhoys are sure to up their offer for Simunovic, but the report does state they could look to bring Jason Denayer back to Scotland.
Denayer was a key performer for Ronny Deila’s men last season whilst on loan from Manchester City, and the impending deal to take Nicolas Otamendi to the Etihad places him further down the pecking order.
It is stated that when that deal is complete, Denayer will leave City on another temporary deal, with Celtic ready to move for him should no deal for Simunovic be possible.