Rendell has scored seven of Cambridge's last 13 goals
Cambridge United director George Rolls says the club should have kept quiet over the extension of Scott Rendell's loan before a deal was finalised.
The U's board announced in December they had reached an agreement to keep the striker on loan from Peterborough until the summer.
But on Tuesday it was revealed that the Rendell deal had been called off.
Rolls told BBC Radio Cambridgeshire: "In hindsight we shouldn't have made a statement, I take full responsibility."
Rendell rejoined the U's on loan in November and has scored seven of the club's last 13 goals in all competitions.
United claim the deal would have seen them paying all of Rendell's wages for the duration of the loan as well as an up-front loan fee of £25,000 and a further payment of £25,000 should they have won promotion.
Posh paid an undisclosed six-figure sum to bring Rendell from the Abbey to London Road in February 2007.
There's no money, we've revised the budget, match sponsorship is down in the current climate and we have to be realistic
Cambridge director George Rolls
Given that the U's have spent just £15,000 on transfers this season, the Rendell deal would have represented a huge financial commitment which Rolls says the club eventually decided they could not justify.
"We've had long hard chats and looked at ways to bring Scott back and the numbers don't stack up," he said.
"Rather than let our hearts rule our heads we've had to make a business decision."
Whilst many fans will agree the U's board have done been prudent in pulling out of the deal, the whole Rendell saga has increased pressure on Rolls in his position as chief transfer negotiator.
Rolls has already been involved in one on-off deal this season with midfielder Ben Farrell being repeatedly offered to rivals Histon.
Meanwhile Rolls was the man responsible for bringing in striker Lee McEvilly - who has since left for Rochdale - whilst the U's were without a manager.
Peterborough United director of football Barry Fry had already been critical of Rolls for pulling out of deal to sign Rendell on a permanent basis last month.
Fry says Rolls was due to sign the loan papers on Monday, but never arrived to complete the deal.
"Scott has been at the Abbey Stadium where he has been hanging around waiting to sign the forms," Fry said.
"Scott's agent is very disappointed that George has also moved the goalposts with the player's personal terms."
Despite the U's board being seemingly willing to invest money in Rendell, Rolls is adamant manager Gary Brabin will have no money to find a replacement.
"There's no money, we've revised the budget, match sponsorship is down in the current climate and we have to be realistic."
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