Colchester manager Paul Lambert has failed in a second bid for Hibernian captain Rob Jones but could continue his pursuit of the defender.
Hibs have reportedly blocked an offer in excess of £200,000 for the 29-year-old, who has 16 months left on his contract.
But Lambert insists negotiations will continue as he looks to reinforce his mid-table League One outfit.
"It's on-going," said Lambert. "I think Hibs want about £20million for him so we'll have to increase our offer!"
However, Hibs manager Mixu Paatelainen maintained Jones would not be leaving.
"We are not interested in off-loading our captain at this stage," he told the Daily Mail.