Riordan has scored 13 goals this season

Riordan is out of contract in October but manager Tony Mowbray would rather keep him on than accept a low fee.

"This offer from Kaiserlautern didn't match our estimation of what Derek brings to our team," said Mowbray.

"We would love Derek to sign an extended deal and we've talked through many different options but we're not getting anywhere really."

Easter Road chairman Rod Petrie said the offer for the 22-year-old had been dismissed.

He told the club website: "Derek's agent was here at the weekend looking after representatives of a German club.

We've got a valuation on every footballer but you've got to weigh that up against what they bring to your club Tony Mowbray

"They followed up their interest with a formal offer which has been rejected. Our preference is for Derek to continue his career at the club."

Sheffield Wednesday have made their interest known, while the player turned down the chance to join Cardiff City in the summer.

And, with Kaiserslautern currently bottom of the Bundesliga, Riordan may not have been too keen on a switch to Germany.

"Whatever money we get for Derek Riordan, we're probably past the stage where we can go out and buy another Derek Riordan so I'd rather have his goals on the pitch," added Mowbray.

"If he leaves for nothing that's fine, I would hopefully go and find a wee gem from somewhere who is hungry enough to come and score goals and make a name for themselves.

"We've got a valuation on every footballer but you've got to weigh that up against what they bring to your club.