Derek Riordan is still out of the first-team picture this term

Manager Martin Allen has decided not to make an approach for the 24-year-old Scotland cap, BBC Sport believes.

Leicester owner Milan Mandaric had earlier said: "I can confirm there is an interest, although we are miles away from conducting business."

Riordan's agent, Jim McArthur, had hoped that Mandaric's words would lead to an offer from the Championship club.

"Leicester have been in touch and I'd expect them to step it up," McArthur told The Sun.

"I've spoken with their owner, Milan Mandaric, and I would like to think something could move this week."

Leicester lost out to Cardiff City in their attempts to sign Jimmy-Floyd Hasselbaink.

"They went in for Hasselbaink and didn't get him and now they've turned their attentions to Derek," said the Scotland international's agent.

MY SPORT: DEBATE What do you think of Derek Riordan's situation at Celtic?

Riordan joined Celtic from Hibernian last summer.

But he has become frustrated after making just 10 starts and has recently been linked with Sheffield Wednesday, West Brom and Norwich.

Discussions with Wednesday failed to produce a move this month.