Duff signed a lucrative new deal to stay at Blackburn instead, but with both United and Liverpool looking for reinforcements to try to keep pace with Premiership leaders Arsenal speculation about the winger has resurfaced.

Souness, however, insists Duff will be staying at Ewood Park. He said: “We signed him on a new deal last year, our intention is to keep him and nothing has changed. We have heard nothing from anyone.”

The Rovers boss is looking to bring in new players of his own and hopes to have sealed a loan deal by next week. Like most managers, Souness has no money to spend on a transfer fee but claims the recession in football has been talked up by club owners.

He added: “Although football is in a difficult period I don’t believe it’s in as desperate a situation as some people would have you believe. I think it is a wonderful opportunity for the money men in football to refuse their managers money at this time.

“We are not spending money because no-one else is spending money, but certainly in the Premier League the situation is not as desperate as some people would have you believe.

“Every manager looks to strengthen their squad and although I have a good group of players I would like to have more quality and more numbers.

“I don’t think anyone in or outside of football would disagree that the fees were too high but it wasn’t the players or the managers making those fees so high.

“Everyone said it couldn’t go on and it hasn’t gone on. There has been a reality check for everyone and we will see where it takes us.”

Duff will miss the FA Cup third-round game at Aston Villa tomorrow with a hamstring injury and Craig Short is out with the same problem. David Thompson should overcome a groin strain and play while David Dunn has shaken off his injury and will play some part.