The 30-year-old Tottenham striker is set for a White Hart Lane exit this January and Spurs boss Harry Redknapp has confirmed that a bid of around £7million has been tabled by Blues.
Keane has not been a first-team regular for Redknapp this season, with Peter Crouch, Jermain Defoe and Roman Pavlyuchenko all ahead of him in the pecking order.
Grant worked with the Republic of Ireland international during his loan spell at Celtic but insists that speculation that a deal is imminent, with a medical having been put in place, is not accurate.
"It is a million miles short of what was supposedly breaking last night," he said.
"There is no such thing as a medical having been put in place.
"Alex has inquired about Robbie many times, even when I came here in the summer.
"When you see top quality players not in the side and you want to add quality to your own squad, Robbie definitely comes into that category.
"Alex has inquired about him, that is open knowledge, as he has done so about a lot of players.
"The quality of the player does not come into question but I think there are a lot of bridges to be crossed yet."
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