Peterborough director of football Barry Fry has told Leeds they cannot afford to sign Posh skipper Tommy Rowe.
The 24-year-old looks almost certain to leave London Road this summer after rejecting the offer of a new three-year contract with the League One club.
Leeds boss Brian McDermott has expressed an interest in the midfielder but Fry insists the Championship side to not have sufficient funds.
He told the Peterborough Telegraph: "I've had Brian McDermott (Leeds manager) on the phone about Tommy and I've also spoken to their chairman Ken Bates and their chief executive Shaun Harvey, but Leeds just don't have enough money.
"We're sorry to be losing Tommy, but he's made it clear to us that we could offer him ?20,000 per week and he still wouldn't sign a new deal.
"That's not to say he won't be here next season because we won't give him away. And if Tommy is here we know we will continue to get 100 per cent from him as he's a terrific lad."
New manager David Weir will have less money to spend on strengthening the squad this summer than predecessor Danny Wilson had in the previous two seasons, but chief executive Julian Winter insists the Blades will still be competitive in the transfer market.
"The club wants to get promoted back into the Championship as soon as possible," Winter said.
"We won't have the biggest playing budget in League One next season. We have been. Two years ago (we did) and I think the second highest budget last year.
"I've said before the club needs to cut its cloth because we can't continue to operate under a benefactor model on an on-going basis.
"But we'll have a competitive budget suffice to say in League One. We want to get into the Championship as quickly as possible.
"People who operate under a benefactor model operate with a comfort blanket around them and my challenge as chief executive is to change that.
"We have a very strong owner in Kevin McCabe, who has put significant amounts of money into the club. Kevin's not going anywhere, but the club has to start operating on a more sustainable level. Simple fact.
"And from a footballing philosophy point of view we have to have a clear single philosophy through the academy right the way through into the first team that helps this target we all talk about of producing more homegrown players.
"It's about people understanding the club's direction, having a clear and consistent plan and everybody working towards the same ends."
