Money scarce as Blackwell goes in search of clarification over Montgomery's future

Blackwell fears the Blades could lose the influential midfield player during the January transfer window after talks over a new four-year deal stalled.

Hull City, Bolton Wanderers, Burnley, Middlesbrough and Cardiff City are all keen to sign the 28-year-old who has made over 300 appearances for the club in the last 10 years.

Blackwell said: "I don't tend to get involved in negotiations on wages and terms but, hopefully, in the next week or two I will sit down with Trevor Birch and maybe get involved in this one.

"I realise what Monty gives us," added Blackwell. "He is a terrific professional and has been with this club for a long, long time now. I think it would be wrong to see him outside the club – but, if we can't agree terms, that is exactly what will happen."

Montgomery, whose contract expires in the summer, had agreed a new deal with Terry Robinson who stepped down as a director last month. Birch, the club's new chief executive, has yet to rubber-stamp that deal.

Blackwell, meanwhile, is still sweating over the future of defender Matthew Kilgallon – despite the defender saying that he would stay at Bramall Lane for the rest of the season.

Former Leeds defender Kilgallon, who celebrates his 26th birthday today, has already been the subject of a failed 1.25m bid from Championship leaders Newcastle United and will be out of contract next summer.

"I will be delighted if 'Killa' is still here at the end of the month because he has been a big influence for the last two years," said Blackwell. "However, there has to be a nagging doubt because there is still significant interest.

"I have lost two players (James Beattie and Michael Tonge) with the last kick of the last two transfer windows so the thought of someone coming in again with a big offer at the last minute is again my concern."

Welsh international winger David Cotterill joined Swansea City in a 600,000 deal yesterday after spending a month on loan at the Liberty Stadium.

Unless others depart, however, there are unlikely to be significant new arrivals.

"Even if I sold players, will there be any money to spend? I don't neccessarily know," said Blackwell. "The financial situation in football is dire. It has taken six months for the players to understand what we are about and to get settled. We have good players coming back and I don't need to disrupt things.

"I was listening to Jose Mourinho two years ago at Chelsea saying he had signed Mutu for 17.5m but it would take 6-12 months for him to settle down. I've brought 18 players in and didn't spend 18m on any of them!"