Swansea City say contract talks with Andy Robinson have collapsed after the midfielder rejected their final offer.
Robinson has a year to run on his current Swansea contract
Robinson has a year left on his Swansea contract, but talks over a new two-year reached a stalemate again on Monday.
A number of Championship clubs are thought to have offered the 26-year-old significantly higher wages, and the Liverpool man is seeking a better deal.
But Swansea, who rejected a bid from Cardiff last week, say they will not increase their "exceptional offer".
"Swansea City feel we have reached the point where this has to be our final offer," said a club statement.
"We feel the deal fully reflects Andy's career development since he joined us in August 2003.
Our aim this season is to achieve automatic promotion to the Championship, and we feel Andy has a big part to play in realising that
"However Andy feels we are still some way short of matching both his playing and financial aspirations over the next few years. Obviously the club is disappointed with this stance.
"Swansea City do not want to sell Andy, and we are more than willing for him to stay with the club and to see out the final year of his current contract - even if this results in Andy walking away as a free agent next summer."
Swansea revealed they rejected a £300,000 offer for Robinson from Cardiff last week after dismissing a £200,000 offer from Southend.
The club are believed to have valued him at £500,000.
Robinson caught the eye with a outstanding display in the League One play-off final last season, and the prospect of playing in a higher league has promoted some extensive soul searching
"It's not about money, it's ambition. I just want what's best but my head's all over the place now," said Robinson.
"I've got to find the balance between playing Championship football and staying at the club I love.
"If I go into the Championship and do well my financial situation could improve dramatically and maybe I'd catch the eye of a Premiership club."
Even if Robinson continues to refuse to sign a new contract, Swansea say they fully intend to make the most of his services for the reminder of his time at the club.
"Our aim this season is to achieve automatic promotion to the Championship, and we feel Andy has a big part to play in realising that ambition," the Swansea statement added.