Graham's agent has confirmed that his player will not be moving back to Middlesbrough despite the fee being agreed and Sunderland remain favourites to land him, ahead of Norwich who are also linked, as well as Stoke and Reading.
Swans boss Michael Laudrup is in no rush to lose the former Watford frontman, and said earlier this week that he wanted him to stay but with Graham looking to move on, Swansea are looking for replacements.
Meanwhile Sunderland target Paul Scharner has moved back to Wigan from Hamburg.
Black Cats boss Martin O'Neill had hoped to land the midfielder on loan until the end of the season.
Sunderland last week