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The Ashton Gate side tried to sign the out-of-favour Reading winger on loan until the end of the season but Royals manager Steve Coppell snubbed the offer.
The proposed deal is all the more surprising given that Reading signed Murray for £400,000 from Bristol City last summer. However, after an impressive opening run of matches for the Madejski Stadium side the 29-year-old has fallen from grace somewhat.
Since Coppell took control of the club last October the Scotsman has had his first team opportunities severely limited. In recent months he has failed even to make the bench on many occasions.
Bristol City chairman Steve Lansdown revealed that although Murray is struggling to break into the Reading team the Royals were quick to snub their offer. He also confirmed that the Robins will continue to seek fresh talent to bolster their squad right up until tomorrow's 5pm deadline.
The chairman told the Bristol City official site: "At present, as is the case with Scott Murray, we have been unsuccessful (in our attempts to bring new players in) but we will keep trying."
"We're making lots of phone calls and having plenty of conversations with managers, players and agents to try and bring the appropriate person or persons in."
Meanwhile, Murray netted twice this afternoon as Reading's reserve side defeated Cambridge United 4-1 at the Madejski Stadium. Recent signing Dean Gordon also got his name on the scoresheet with a forceful header.