Hull have told Leicester City they will not meet their asking price for goalkeeper Kasper Schmeichel.
City have rejected two bids for their highly-rated keeper of £1.25million and £1.75m, and are believed to value Schmeichel at £4m.
City do not want to lose Schmeichel, who is currently away on international duty with Denmark.
But the keeper has only one year left on his contract, and City would face a tough decision should the 26-year-old refuse to sign a new contract or indicate he wants to leave the club.
Schmeichel has repeatedly stated publicly he wants to play in the Premier League, where he broke through with Manchester City.
But he has always indicated he is happy at City and ambitious to make the step up with Nigel Pearson's men.
Hull boss Steve Bruce knows Schmeichel well as he is best friends with his father, Peter, from their time together at Manchester United.
Bruce's son Alex, who is also with the Tigers, grew up with City's shot-stopper.
Bruce wants to recruit at least one new keeper as he bolsters his squad for their return to the Premier League, and Schmeichel is his number one target.
However, reports suggest Hull will only consider upping their offer should a rival bid come in for Schmeichel.
Swansea were also understood to be considering a move for Schmeichel but that has yet to materialise, as manager Michael Laudrup has reportedly clashed with the club's hierarchy over his transfer budget.
Hull's offer for Schmeichel remains on the table, and sources say the club are still confident of getting their man.
City are in no rush to sell, though, and a lot will depend on Schmeichel when he returns from international duty.
