Wolves boss Kenny Jackett has told the club's official website the club did not block Rajiv van La Parra leaving the club on deadline day.
The transfer did not go through, but Jackett has insisted that was not down to Wolves.
He said: "A move broke down, it wasn't anything our end.
"The size of the bid was one thing, it was of considerable size. But that has now gone away and he is a Wolves player."
It looks instead like Leeds United simply changed their minds and pulled out of a deal.
The Whites managed to secure the transfer of Excelsior winger Jordan Botaka on deadline day, who could be in line for his debut against Brentford this weekend.
Van La Parra may just have instead been being lined up as an alternative in case the deal for Botaka fell through.
Wolves have no intent on letting the winger leave on loan, Jackett confirmed, instead urging him to fight for his place in the side.
Van La Parra, 24, has made two Championship appearances so far this season, and was a signing a year ago from Dutch club Heerenveen.