Houston Dynamo confirm stalemate over talks with Derek Riordan

Derek Riordan will have to reduce his demands if he is to land a move to MLS side Houston Dynamo.

The American outfit looked to be favourites to land the out-of-contract Hibs forward this summer and the Texan club's hierarchy have confirmed they have held talks with Riordan's representatives.

However, with English Championship side Watford also reported to be keen on the SPL's third-highest goal scorer, Dynamo have revealed there has been no progress on their financial discussions since an offer was made in March.

Dynamo's president of business operations, Chris Canetti, said: "I will confirm that we've been in touch with his agents. We decided the first time that we were too far apart and there's been nothing yet to indicate that we're any closer.

"We have not made another offer. Unless circumstances have changed, I'm not sure anything can happen."

Meanwhile, goalkeeper Graham Stack has signed a new one-year deal with Hibs.

The 29-year-old admitted having some fears over his chances of an extension at Easter Road after his two-year stay had been characterised by persistent injury problems.

However, Stack has accepted a pay cut to remain in the capital after manager Colin Calderwood expressed his desire to hang on to the former Republic of Ireland under-21 cap.