Melbourne City's swap deal with Adelaide United that would have secured defender Osama Malik is off, with David Williams pulling the pin on the deal.

Williams rejected an 18-month deal from United and now looks set to join struggling Newcastle Jets, who are desperate for attacking reinforcements.

City could make the first signing of the A-League January transfer window, which opens on Tuesday, with keeper Dean Bouzanis set to be unveiled.

Bouzanis is expected to sit on the bench against former club Western Sydney on Saturday at AAMI Park, with Tando Velaphi set to join a Japanese J-League club.