Wolves have given up hope of signing Peterborough striker Aaron Mclean, according to Posh boss Darren Ferguson.

Mclean, League Two's top scorer last season, has been the subject of two failed bids of over £1million from Wolves but Posh director of football Barry Fry has already warned he is holding out for a deal worth £5million.

Now it appears Molineux boss Mick McCarthy has admitted defeat in his bid to land the 25-year-old.

Ferguson told the Evening Telegraph: "The deal is dead as far as I am concerned. Wolves made two bids and they would have gone higher, but I spoke with Mick McCarthy and told him they couldn't afford Aaron.

"He has accepted that fact and will now look elsewhere and that's excellent news for us. We don't want to lose any of our better players and Aaron certainly falls into that category.

"It's a real statement of intent by the club and the chairman to refuse to sell. It shows that we mean business again next season."

Ambitious Posh have already been installed as one of the favourites to win a second successive promotion next season to the Championship and Ferguson insists Mclean is happy to remain at London Road for now.

Ferguson said: "I have spoken to Aaron and he's fine about the situation. He's a good lad and a good professional and I don't expect anything other than to see him give his all for the club in training and in matches, like he always has."