Town chairman David Sheepshanks has admitted that a return to Portman Road for Sixto Peralta looks ever more unlikely. Peralta, unwanted by Inter, is out of Town's price range and the cash-strapped Italians are unwilling to loan hi for another season.
Sheepshanks said: "We can't afford to sign Sixto until we have done the necessary business ourselves and even then, given the financial situation we are all in, it is still unlikely.
"He is an exceptionally good guy and one the fans have identified with but the stark lessons are there for all of us if we don't balance the books.
"Leicester City have announced they are in severe difficulties and if we don't do our business correctly then we could have problems.
"I'm confident that won't be the case, we have sufficient interests to ensure we can bring the money in that we need to.
"The amount of wages that are involved in recruiting a player of Sixto's ability are so substantial that it makes it impossible for us to take on that commitment — at least for the moment."
Town have had no firm bids on any of their players other than the moves of Titus Bramble, Gary Croft and Matteo Sereni.
Peralta is currently training in Argentina with his former side, Racing Club.