Leeds United have drawn a line under their pursuit of Alan Smith by ruling out a deal with the former Elland Road star.
The Championship club ended their interest in Smith after conceding that they could not afford to finance a transfer from Newcastle United.
Newcastle are willing to release Smith on a free transfer and Leeds enquired about signing him at the end of last season, but his contract on Tyneside - worth around £50,000 a week - has another year to run.
Smith, 30, was not prepared to accept a transfer which amounted to a pay cut over the next 12 months, and despite Newcastle offering to fund a large portion of his wages, Leeds have walked away from the chance to complete a highly-controversial signing.
United chairman Ken Bates said: “We were interested in Alan and Alan, for what it was worth, was willing to consider coming to us.
“But he’s on £3million a year and Newcastle wanted a £1million contribution. We can’t afford it, as simple as that.”
Speaking a fortnight ago, Grayson appeared to suggest that the club’s interest in Smith was dead, telling the YEP: “There are too many reasons for it not to happen.”