LEEDS United were poised to admit defeat to Crystal Palace today in their bid to sign Joel Ward from Portsmouth.
Ward is expected to move to Selhurst Park after undergoing a medical and agreeing personal terms.
Leeds manager Neil Warnock has been pushing to bring Ward to Elland Road, but it now appears Leeds have been unable to finance a £400,000 fee.
The deal with Palace raises questions over the ability of Leeds to finance Warnock’s other planned transfers over the summer.
There have been no arrivals at Elland Road since that of Jason Pearce last month for a fee of around £500,000 from Portsmouth.
Palace were among six clubs who expressed an interest in Ward, along with Burnley, Ipswich Town, Blackpool and Sheffield Wednesday.
Warnock, who is departing on holiday this weekend, has made no secret of the need for a quick and high-calibre influx of players at Elland Road having told 11 existing squad members that they had no future with Leeds earlier this month.
He said: “Quite honestly you’ve seen with my retained list that I don’t think we’re anywhere near as good as we should be with the size of this club.”