Hibs boss John Collins had hoped to bring in Donaldson immediately

The striker, who has signed a pre-contract agreement with Hibs, will now stay with the Nationwide Conference club until the end of the season.

York had earlier rejected a �200,000 offer for the 22-year-old who has scored 18 goals this season.

He will move to Edinburgh in the summer without a fee as the player is moving outside of England.

York managing director Jason McGill was firm in his rejection of the Hibs offer.

"Although we have been offered �50,000 from Hibernian for Clayton to leave immediately, our position remains the same, Clayton Donaldson will stay at York City until the end of the season," he said.

McGill also made clear his disappointment at losing a key player for the club.

"We only hope the intervention of this transfer arrangement has not unsettled our player and that Clayton will still perform to the best of his ability," he added.

The player meanwhile expressed his delight at the move north of the border to York newspaper The Press.

"I realised there were a few clubs interested and a few had put bids in. I know there were some league clubs but Hibs came in and, football-wise, I think it will be a great move for me. "I talked to a few people in the game and they couldn't speak more highly of the opportunity," added the striker.