PETERBOROUGH United chief Barry Fry is digging his heels in over a fee for York City hot property Clayton Donaldson.

The Posh's drector of football says it's unlikely the Minstermen's top scorer will be moving to London Road this month - because he won't pay a penny more than £100,000 for the Conference's leading striker.

Although Peterborough have plenty of cash in manager Keith Alexander's transfer war chest, Fry isn't budging on his Donaldson bid - for the time being.

United have just spent £260,000 on Stevenage Borough winger George Boyd and yesterday paid out £150,000 to Grays Athletic for striker Aaron McLean, whose loan deal has been made permanent.

Given those figures, it is not surprising that Fry's verbal offer for 22-year-old Donaldson falls well below City's valuation.

Fry told the Press that he'd offered "more than a fair price" for the 18-goal forward but conceded the Minstermen board "don't want to sell him".

City have reiterated their desire to keep the striker as they continue their promotion push and have offered him an extension to his current contract, but the player has yet to sign.

Peterborough have lost five games in a row in League Two and are keen to boost their firepower and remain in the market for players.

Fry, who was at City's home defeat to Woking last Friday in an effort to negotiate a deal, said: "I put in an offer, which was turned down. Obviously they (City) have got a great chance to go up with him and it has got to be a ridiculous offer to prise him out.

"From my point of view, I know he's out of contract at the end of the season. I have offered more than a fair price of £100,000. I won't be increasing it.

"I rate the boy very highly and I think he's got great potential. I am sure he will do it in the League. My offer is still on the table. I want him to join in January but I would doubt it (would happen) unless they have a change of heart."

Fry said he would consider talking again with City's board towards the end of the season in a bid to revive the deal, but that depended on whether Posh manager Keith Alexander "still wanted him".

Fry said: "I am prepared to talk at the end of the season - that's if my manager still wants him. He might decide to spend his money somewhere else."

Fry is running the risk of another club coming in for Donaldson and, with Peterborough seemingly out of the race for the time being, the door could open for Scunthorpe United who have also watched the striker in recent weeks.

The Iron, League One leaders, could be in the market for a striker if either - or both - front pairing Billy Sharp and Andy Keogh are sold during the transfer window.

Sharp has netted 17 times in the league this term, and 19 in total, to make him the division's joint top scorer, while Keogh, a former Leeds United trainee, has struck six times.

Both have been the subject of transfer speculation and The Press has reported how Scunthorpe sent a representative to KitKat Crescent when City met Halifax to cast an eye over Donaldson.

City today said his situation was unchanged and, while several clubs has expressed an interest, none have submitted an offer in writing.

Meanwhile, former York City goalkeeper Chris Porter has signed for UniBond League premier division outfit Gateshead. The 27-year-old missed just one Conference game for City last season.

Gravesend could join City in third place in the Conference tonight if they can pick up maximum points at Grays Athletic in a game televised live by Sky.