The league's bottom club say they could have a new manager in place within the next few days, although another candidate Colin Hendry is also out of the running.

Rovers' owner Jack Walker asked United chief executive Martin Edwards for permission to speak to Alex Ferguson's right-hand man.

But last week Edwards claimed the highly-coveted Kidd would only leave Old Trafford "over my dead body" and not surprisingly he has turned Walker down.

Edwards claims Kidd, who has also been targeted by Manchester City and Everton in the past, has no problems with United's decision even though he could have quadrupled his salary with Rovers.

"Blackburn have made an approach and we have refused permission," said Edwards.

"I have told Brian Kidd, and he accepts the decision."

Kidd's request for a new four-year contract was granted in the summer and this must increase speculation that he will eventually take over from Ferguson when the Scotsman retires.

'Progress'

Despite this setback Rovers say they are making "good progress" in the search for Roy Hodgson's successor.

Chief executive John Williams said: "We drew up a short-list and have since made good progress although we will not be drawn on the continuing speculation."

The fans recently voted for ex-player Colin Hendry to be installed, but the centre-back says he is staying with Rangers.

"My playing career carries on at Rangers. I am happy here and that's the end of the story," he said.

"Becoming a manager is something that will probably happen later in my career."

As well as Kidd and Hendry, other managers rumoured to be under consideration are former Liverpool bosses Roy Evans and Graeme Souness.