Barnsley have accepted a bid from a mystery club for Brian Howard after also revealing they had rejected Sheffield United's offer for the player.
Tykes club captain Howard had seemed all set to move across South Yorkshire to Bramall Lane after The Blades confirmed they had agreed terms with both the player and Barnsley.
However, Barnsley have insisted no such agreement is in place and that they have now accepted a bid from another club.
Howard is set to leave Oakwell on loan until January when the deal will become permanent.
"Given the widespread reporting that the club has agreed terms with Sheffield United for the transfer of Brian Howard, it is necessary to make a statement," read a Barnsley statement.
"As at 9.00am this morning [Tuesday], the terms offered in writing by Sheffield United for the transfer of Brian were not acceptable, most particularly in terms of proposed sell-on arrangements.
"Overnight, Barnsley FC has received a further acceptable offer for Brian from another club, and as is proper, the club has reverted to his agents to obtain formally their client's instructions in relation to this opportunity."