Talks between Mike Phelan and Hull City over the vacant managerial job remain ongoing but are currently "wide apart", according to the caretaker boss's representatives.
The Humberside outfit remain in limbo both on and off the field ahead of the resumption of Premier League action this weekend, as a proposed sale to a consortium from China has also collapsed.
City, up for sale since 2014 after owner Assem Allam's request to change the club's name was rejected by Football Association chiefs, were close to being taken over by a Far East group.
Widespread reports suggest that the group, led by Dai Yongge and Dai Xiu Li, has been forced to withdraw interest due to a failure to meet the FA's fit and proper person test.
Hull have started the season in a positive manner, taking six points from the first nine on offer, but they have still yet to appoint a permanent successor to Steve Bruce.
In a statement released on Thursday afternoon, caretaker boss Phelan's representatives said: "To avoid further speculation we wanted to clarify the situation regarding Mike Phelan's position at the club.
"We remain in talks with the club's current owners but are still wide apart on an agreement. As he has done over the last seven weeks, Mike will remain 100 per cent focused on preparing the team for their next match."
Hull, currently fifth in the Premier League table, face Burnley at Turf Moor on Saturday afternoon.
