Wolfsburg insist that they have not yet agreed a deal with Chelsea for Kevin De Bruyne, but confirmed talks were ongoing.
Reports had claimed that a £17million deal for the Belgian midfielder had been agreed between the two clubs, but the German outfit have insisted this is not correct.
De Bruyne himself wants regular first-team football ahead of next summer's World Cup finals and that is on offer at Wolfsburg, who look to have fended off interest from a host of their Bundesliga rivals.
Wolfsburg sporting director Klaus Allofs explained to German daily Kicker that a deal was progressing but is not yet done.
"Some papers already announced the deal is done, but that's premature," said Allofs.
"We can't announce a deal yet and we aren't in a desperate mood, though we would not be talking to Chelsea, if we had totally opposing views."
Allofs did insist that if De Bruyne does leave then it will only be for Wolfsburg.
"The matter of which club Kevin would move to - unlike before Christmas - is no longer doubtful - that will be the VfL [Wolfsburg]."
Despite Allofs' assertion, there appears to be another club in the running to sign De Bruyne according to Chelsea manager Jose Mourinho.
He said: "We've had a few proposals for Kevin De Bruyne, we will keep analysing them. He's a fantastic player with potential.
"We have had no bids for Mata or Essien. We've had two for De Bruyne which we are analysing."
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