HULL City boss Steve Bruce is pressing ahead with his bid to land a new midfield star – but the Tigers have warned Premier League rivals Stoke they are not prepared to pay a fee for top target Wilson Palacios.
The Tigers boss had expected to unveil his sixth summer signing today after agreeing a £4.5m deal for Burnley's Charlie Austin.
However, as reported in today's Mail, problems encountered on the day of his medical and talks have scuppered those plans.
It may see Hull and Bruce return to Celtic's Gary Hooper in a bid to bolster their frontline, but while his attacking plans have been thrown into turmoil, Bruce remains firmly in pursuit of Palacios, who served under him with distinction during spells with Birmingham and Wigan.
He is understood to head City's wish-list for a midfielder with top-flight experience.
Contact has been made with Stoke over the Honduran's availability, but knowing a big fee could still be required for a new frontman, transfer funds are limited for deals to strengthen elsewhere in the squad.
Palacios has two years remaining on his deal at the Britannia Stadium and though new boss Mark Hughes is keen to off-load the 28-year-old, Stoke want some return on the £6m they paid Spurs in 2011.
A £2m valuation, however, will not be met by the Tigers.
With Palacios commanding a reported £26,000 a week at Stoke, City will only pursue the midfielder if the Potters are prepared to cut their losses with a free transfer.
The summer arrivals of George Boyd, Maynor Figueroa, Curtis Davies, Ahmed Elmohamady and Allan McGregor have already cost City in excess of £6m and with a similar fee to the one initially agreed to sign Austin needed for an alternative new forward, the Tigers are keen to avoid splashing out further funds if possible.
A promise from owners Assem and Ehab Allam to adopt a careful approach following promotion out of the Championship still leaves scope for further additions, but with a budget of around £10m for strengthening, once a replacement for Austin is found, free transfers and long-term loans will be preferred.
That financial framework has been accepted by Bruce, who was thought to be in full support of the decision to pull the plug on the Austin deal.
Meanwhile, City yesterday confirmed Paul McShane's new two-year deal at the KC Stadium, adding to James Chester and Liam Rosenior in being rewarded for helping the Tigers into the top flight with a new contract.
The fans' favourite saw his previous contract expire this summer but he formally put pen to paper upon his return from an extended summer break yesterday.
McShane, a survivor from City's last Premier League adventure, when he was sold to the club by Bruce from Sunderland, is now tied to City until June 2015 and will aim to build on a revived career when returning to the Premier League.
McShane said: "When we got relegated in 2010, it was always my aim to get back up there. We had such a great season last year and we're back up there now."
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