Skysports.com understands Celtic have turned down Hibernian's offer to re-sign Derek Riordan on loan.
Hibs are keen on bringing the former Easter Road favourite back to the club and made an enquiry to sign him on a loan basis.
However, Celtic have snubbed their overtures even though the 25-year-old does not figure in Gordon Strachan's plans.
Celtic are prepared to sell Riordan but their asking price is believed to have scared off a number of clubs, including Burnley, Leeds, Hearts and Hibs.
Riordan is keen to get away from Parkhead after finding himself frozen out of things his joining the club in 2006.
The Scotland international is in the final year of his contract at Celtic and he could sign a pre-contract with interested clubs as soon as December with his deal due to expire in May.
The news has alerted Hibs and local rivals Hearts who are now ready to battle it out for Riordan's signature on a pre-contract.
If there are no further bids for Riordan during the transfer window, the player is prepared to wait and sign a pre-contract with any interested club at the end of the year.