Boro held an initial interest in the former West Ham United man but are not expected to follow the deal up before the end of the transfer window.
Oxford, who can play as either a defender or midfielder, is expected to leave the German Bundesliga side on loan this month for more first team opportunities. He has been in discussions with Championship side Luton Town, who could now be in pole position to sign him now with Middlesbrough seemingly ruling themselves out of the running.
He joined Augsburg in the summer on a permanent deal from West Ham United having spent the second-half of the last campaign there and penned a four-year deal. He has played eight times so far this season for Martin Schmidt’s side.
Oxford, who is 21 years old, started out with the Hammers and rose up through their youth ranks. He played 17 times for their first team and also had loan spells away at Reading and Borussia Monchengladbach.
The ex-England Under-20 international was tipped for a massive future as a youngster but has since found opportunities hard to come by in Germany.
A loan move to Luton appears a distinct possibility now and he would offer Graeme Jones’ side more options and depth in their squad for the rest of the season. The Hatters are now seven points from safety after Stoke City’s win over West Brom last night.