Dundee manager Jocky Scott has moved to avert a rift with his side's city neighbours by claiming he has not lined up a bid for Dundee United midfielder Scott Robertson.
Dens Park director Calum Melville, whose money has allowed Scott to sign the likes of Leigh Griffiths and Maros Klimpl, claimed Robertson was their "number one target".
But Scott, whose team face Rangers in the Co-operative Insurance Cup quarter-finals on Tuesday, claims he has no plans to bring the 24-year-old back to the club.
"I can assure Dundee United that we are not interested in Scott Robertson," Scott said.
"We'll not be making a bid in the near future. I haven't even thought about bringing any players into the picture because January is a long way away."
Melville had seemed intent on signing Scotland international Robertson, who is currently out with a groin injury.
The entrepreneur told BBC Scotland he felt a £500,000 bid would tempt United to sell the player, who left Dundee under freedom of contract last year.
"They need the money and we can pay better wages than them," Melville was quoted as saying.
"I want to re-galvanise Dundee and I don't make rash promises. What I say I'll do, I do."
United hit out at Melville's comments, with boss Craig Levein accusing him of trying to "noise up" the Clydesdale Bank Premier League club.
Levein has topped short of making a formal complaint but Scott insists Melville was only guilty of naivety.
The Dundee boss said: "What's happened is that Calum has just innocently spoken to someone and, through lack of experience in the football side of talking to media people, they have picked on what he has said and used it."
The row threatened to overshadow Dundee's preparations for the visit of Rangers as they look to repeat their 3-2 victory against Aberdeen in the previous round.
Rangers are struggling on and off the park with their embarrassing 4-1 home defeat by Unirea Urziceni followed by a weekend when they lost the SPL lead and saw their financial problems dominate the headlines.
Ibrox boss Walter Smith admits the negativity surrounding the club is making life difficult on the pitch but Scott does not anticipate Rangers being adversely effected.
The 61-year-old said: "Put it this way, there's never a good time to play or Rangers or Celtic, regardless of the problem they have.
"Walter will put out a strong side. He'll be coming here and having his players prepared and ready to go out and win the game.
"It's going to be very, very difficult for us. They have got international players and many of our boys have not played in the Premier League.
"We are the underdogs but if we can go out and produce the same performance we did against Aberdeen then I'll be happy."