SOUTHEND United have denied that they have pulled out of the race to sign Josh Simpson on a permanent basis from Peterborough United.

Posh’s director of football, former Blues manager Barry Fry, has claimed that Southend are no longer interested in keeping the 23-year-old at Roots Hall.

But a club spokesman for Southend insisted that was not true.

“Southend United does not conduct its transfer negotiations in public but can confirm that we will continue to keep a dialogue open with Peterbor-ough United regarding Josh Simpson,” said the spokesman.

“Manager Paul Sturrock is currently taking into account where best he might utilise the resources available to him during January transfer window, by considering a number of new players.”

Simpson has been on loan at Blues from Peterborough since the start of the season. He has made 24 appearances during that time, scoring two goals but his loan spell expires at the start of January.

And in yesterday’s Echo he revealed he wanted to stay at Roots Hall.

Simpson is currently sidelined by an ankle injury he picked up during last week’s 2-0 win at Cheltenham Town. Blues are likely to have to pay a fee if they want to secure his services as he has two-and-a-half years left on his contract with Peterborough.