Speculation that there would be an announcement within the next 48 hours was scotched by a West Ham spokesman who declared: “This is absolutely, categorically not the case.”

Magnusson is due to meet West Ham board members before the end of the week after his original bid fell short of West Ham’s valuation.

The latest offer is thought to include an agreement to take on the club’s existing block of £20m (€30m) debts. However, the funding for the deal will not come from the investment bank Starumur-Burdaras where Magnusson is vice-chairman.

Magnusson will be given permission to consult the club accounts if West Ham chairman Terry Brown is tempted by the latest bid.

Iranian-born businessman Kia Joorabchian, who co-ordinated the transfer of Argentina internationals Carlos Tevez and Javier Mascherano to the club, has yet to make any offer despite declaring an interest in the Hammers.

Alan Pardew’s side have not won since the arrival of the pair and have failed to score in their last six matches.

But veteran striker Teddy Sheringham believes they must return to the fear-free football that helped them to reach the final of the FA Cup last season.

Sheringham hopes to be involved when West Ham return to his former club Tottenham on Sunday but accepts that competition for places is high.

Sheringham said: “Last year, after getting promoted, we went into every game with a no-fear attitude and of course that helped us get results.

“But you have to have a fear of not wanting to be embarrassed or made to look silly. That was something we had when we came up, the determination to be on par or better than our opponents.

“I want to play but I know this is competition – five other strikers. But I am here to play and will continue to work hard like everyone else.

“There’s been a lot of stuff written about the two Argentinian boys but they are settling in and are part of the team.

“But as players we can only worry about what is happening on the pitch and that’s what we are concentrating on.”