Bristol City have had an offer of compensation to sign Hakeeb Adelakun rejected by Scunthorpe, Sky Sports News understands.
The 22-year-old is out of contract at Glanford Park but the Iron are due remuneration having signed him as a 16-year-old in 2012.
Adelakun has also been of interest to Hull and Nottingham Forest in the Championship, as well as newly-promoted Blackburn Rovers.