Skysports.com understands Scunthorpe have rejected a bid from Peterborough for midfielder Michael O'Connor.
The Iron are facing a battle to keep hold of the Northern Ireland international following their relegation to League One with a number of clubs chasing his signature.
O'Connor has established himself as a key player at Glanford Park since arriving from Crewe in 2009 and his performances have not gone unnoticed.
Posh are keen to bring the 23-year-old to London Road and are trying to steal a march on their rivals by tabling an offer.
However, Scunthorpe have rejected their bid as they hold out for a higher offer for the classy playmaker.
O'Connor is entering the final 12 months of his contract and turned down fresh terms with the club last month.
It remains to be seen if Peterborough come back with an improved offer with Posh boss Darren Ferguson a big admirer of the player.