Tottenham boss Harry Redknapp refuses to accept defeat in his battle with Manchester City for Wigan Athletic midfielder Wilson Palacios.

The Daily Mail says the battle between Spurs and City to sign Palacios took a new twist when it emerged Wigan have offered the Honduras midfielder a new contract in a last-ditch attempt to keep him.

Palacios will double his wages to around £20,000 a week if he decides to stay, although the offer still falls short of what he could earn at White Hart Lane or Eastlands.

Palacios favours a move to City because he would not have to relocate from his home in the north-west.

That is also Wigan's preference because they would receive more of the cash up front, although Spurs are understood to have relented in their desire to spread the £14m fee over four years and will pay the money over half that period.

With Daniel Levy overseeing negotiations, Redknapp said: "I like Palacios and the chairman is trying to do something there."