Barry Fry has revealed that Peterborough have accepted a bid of £150,000 for Rene Howe, with Lincoln set to miss out on the striker.
The Imps have been linked with a move for the 22-year-old, who impressed during a loan spell with Morecambe last season.
Lincoln manager Peter Jackson has already held talks with Howe but Fry admits another unnamed club has made a good offer.
It appears Lincoln may now be priced out of a swoop for the former Kettering man unless they can match the £150,000 valuation.
"I have spoken to Peter Jackson and Steff Wright about Rene and we have thrown a few figures about," Posh director of football Fry told the Lincolnshire Echo.
"But the fact is someone has come in with a £150,000 bid which we have accepted and unless Lincoln can match it then I would say a move there would be unlikely.
"We want to strike a permanent deal rather than a loan and although I would like to do Lincoln a favour, business is business I'm afraid."
Yeovil manager Terry Skiverton declared his interest in Howe earlier this week, while a number of other clubs may have been monitoring the situation.