New Swansea City manager Michael Laudrup has acknowledged it may now be difficult to complete the signing of Gylfi Sigurdsson.
Sigurdsson excelled at the Liberty Stadium during a loan spell from Hoffenheim last season and had been expected to sign a permanent deal but, following the departure of manager Brendan Rodgers to Liverpool, there is talk the Iceland midfielder could instead move to Anfield.
"It's a special case," Laudrup said at his first press conference as Swansea boss. "He was on loan here and did very well. As far as I know he has a possibility to go to another club. He is owned by a German club. If bigger clubs come with a lot of money it's very difficult to compete.
"Of course I would like him to stay, he did very well, but we have to look at a lot of things - obviously the financial part of it. The money from other clubs - we can't compete. I think it's very important that we have a balance at the club and the team, so we have to consider a lot of things."
Former Barcelona and Real Madrid star Laudrup, who has previously managed sides including Brondby, Spartak Moscow and Mallorca, revealed at the press conference that he had known little about Swansea when approached about the post.
"I didn't know so much, to be honest," he said. "I think the research is very important. If I had done some more research in former jobs I might have taken some other decisions. The people I talked to were very positive (about Swansea). People said, 'Michael it would be a good club for you'."
Laudrup favours the passing style championed by former boss Rodgers and said he is not looking to make wholesale changes at the club.
"I think what I would like at the beginning is to come in and see how things are here," he said. "Maybe after a small period we can improve and make small changes, but change for changing's sake - I don't think that is good."
He added: "To sign seven or eight players does not make sense."