Peterborough have claimed they dropped their interest in Sam Baldock after he failed to impress manager Darren Ferguson during talks.
As revealed by skysports.com, the striker's proposed transfer from MK Dons to Peterborough collapsed on Wednesday evening.
Posh's pursuit of the striker appeared to be coming to fruition when a £1million-plus bid for the 22-year-old was 'reluctantly accepted' by the League One club on Wednesday.
However, following a face-to-face meeting between Baldock and Ferguson the move fell through.
Dons issued a statement saying Baldock rejected the chance to join the newly-promoted Championship club, but Posh chairman Darragh MacAnthony claims his club pulled out of the deal.
"What a call I had from the gaffer. He doesn't want Baldock after meeting him and it's nothing to do with terms. Fair enough, we move on," said MacAnthony on Twitter.
"The gaffer's words to me were 'Chairman, I don't want us to spend that money on this lad.' I'm gutted but I trust the manager's gut on things.
"The lad didn't even want to go to have a look at the training ground with the manager. That's football though. No bitterness and we wish him and MK all the best."