Leeds confirmed their approach for the former Chelsea team-mates, but Swindon later claimed negotiations had been broken off after Leeds failed to meet the level of compensation required to prise them from the County Ground, as set out in their contracts.

However, a day of confusion ended with United insisting talks were ongoing.

Managerless Leeds crashed to a 5-1 defeat at Luton on Saturday, their fourth defeat in five matches following the dismissal of Kevin Blackwell last month, and chairman Ken Bates seemed to have found a long-term replacement.

The original statement released by Swindon said: “It is with regret that the board of Swindon Town FC on Saturday evening granted permission for Leeds United to talk to Dennis Wise and Gus Poyet.

“The three-year contract that Dennis Wise and Gus Poyet signed with the club in May of this year provides Dennis and Gus with the option to speak with potentially-interested clubs from the Premiership and Coca-Cola Championship, and states that, should Dennis Wise and Gus Poyet resign from Swindon Town FC in order to move to such a club, Swindon Town FC will receive the value of one year of both employees’ salary in compensation.

“It is on this basis that the club have reluctantly granted permission for such talks to take place.

“The board of Swindon Town FC have offered Dennis Wise an improvement to his contract at the club, combined with a share option package in order to secure his services.

“A further announcement will be made when these talks have been concluded.”

Leeds later confirmed the approach, but Swindon apparently pulled the plug on the duo’s switch to the Yorkshire club due to an inability to agree compensation.

“Regrettably, it has proven impossible for the clubs to agree a suitable financial package,” a second Town statement read.

“Earlier today, the club withdrew permission for Leeds to talk with or seek to appoint Dennis Wise and Gus Poyet.

“Dennis and Gus remain valued members of Swindon as both players and part of the management team.”

However, the League Two club hinted a compromise could still be reached and that the deal was not dead.

The statement continued: “While discussions are ongoing between the two clubs, Dennis and Gus remain contracted until the end of June 2009 and are continuing to fulfil their duties; both they and the club are determined to ensure that the progress achieved to date continues.

“Both individuals have been offered significantly improved terms at the club and it is hoped that they will both remain with Swindon for the foreseeable future.”

With United going on to claim talks between the two parties were very much alive, it seems likely Wise will rejoin his good friend Bates before the week is out.