Scunthorpe have turned down a second offer from Burnley for striker Martin Paterson.
The Irons snubbed a £400,000 move for the 21-year-old a fortnight ago, and have now rebuffed an improved offer from the Championship side.
The Clarets are keen to boost their firepower ahead of the 2008/09 season and see Paterson, who scored 14 goals last term, as an ideal addition.
Their current bid is believed to include incentives based on appearances and league placing, but with Scunthorpe hoping to launch a promotion bid of their own next term they are unwilling to do business.
Meanwhile, Ian Baraclough has signed a one-year contract at Glanford Park to become first-team coach.
The deal also includes a pay-as-you-play option as the 37-year-old midfielder will be combining his efforts on the field with those off it.
One player Baraclough will be working with next term is Garry Thompson as the winger has agreed a free transfer from Morecambe.
The 27-year-old turned down the opportunity to remain at Christie Park in order to sign a three-year deal with the Iron.
Thompson played a prominent role in the Shrimps' rise into the Football League in 2007, but after nine years with the club he has decided to take on a new challenge with Nigel Adkins' League One outfit.