Mark Hughes has rejected Lassana Diarra's claim that Manchester City offered him a lucrative deal.
Diarra has joined Real Madrid from Portsmouth for a reported fee of £20million after he passed a medical with the Spanish giants.
However, on Tuesday the French midfielder was quoted as stating that City also made an approach for his services.
Hughes, though, has dismissed these claims, insisting that no talks were held with Diarra's representative.
He said on Sky Sports News: "We were made aware of what level the deal was at and what it would take to bring the boy to the club.
"In the end we understood the figures and felt it wasn't right for us. There was never an offer made for Lassana Diarra.
"We were not given permission to speak with him. For him to say that he was offered more money is completely wrong."
City currently lie in the relegation places but the cash-fuelled club are expected to target high-profile names in the January transfer window.
And Hughes does not expect their current plight to affect his ambition to strengthen his squad in the New Year.
He said: "We've been linked with every player that is known to man, so we have to accept that.
"At the end of the day we have a project here and we have a football club that is at a time where its development is very exciting.
"At the end of the day if players see an opportunity to come here we can offer them something that will stimulate them and allow them to progress.
"I don't think that, at this moment in time, people are being realistic about where we are in our development.
"At this moment in time we are not in a position where we would like to be. Most people understand this is not where we intend to be at the end of the year.
"As a consequence, our ability to attract players won't be damaged."
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