Daniel Sturridge could be set to leave Manchester City after contract talks ground to a halt.
The 19-year-old striker is out of contract this summer and has been in negotiations with City bosses over a new deal.
The Academy product is believed to be pushing for a £40,000-a-week package after scoring six goals from 32 senior appearances, which have included 12 starts.
But manager Mark Hughes confirmed on Sunday that the club's latest offer has been turned down and there are no plans to re-open talks.
"We have made an offer which is a good offer for Daniel at this stage of his career and that was refused a couple of weeks back," he said in the Manchester Evening News.
"Where we are at the moment needs a shift in position from his advisors."
Sturridge would be available on a free transfer and Chelsea and Aston Villa are believed to be monitoring the situation, although either would have to pay City compensation for the youngster.
City are now expected to turn their attention to bringing in two high-profile strikers over the summer.
The likes of Barcelona's Samuel Eto'o, Arsenal's Emmanuel Adebayor, Chelsea's Didier Drogba and Portsmouth's Peter Crouch have all been linked with the Blues, while Blackburn's Roque Santa Cruz has been a long-term target.
"I am going to have a couple of days off now but the phone will be on and I will be busy all the way through the summer," Hughes added.