SUNDERLAND'S hopes of securing the services of Huddersfield Town hot-shot Jon Stead were fading last night.

Despite an £850,000 bid from the Black Cats still lying on the table at the McAlpine Stadium, the Terriers have been holding out for a bid in excess of £1m.

And, with the transfer window closing on Monday, Huddersfield are considering an offer made yesterday afternoon by an unnamed Premiership club, believed to be Blackburn Rovers.

A host of top-flight bosses have been monitoring the player's progress in Division Three, after hitting 18 goals for the promotion hopefuls.

Sunderland are reluctant to up their offer and chairman Bob Murray indicated last week that manager Mick McCarthy believes their bid is more than enough for Stead.

A Huddersfield spokesman last night said: "We can confirm we have received an undisclosed offer from a Premiership club for striker Jon Stead which the board is currently considering."

Blackburn have been lining up a swoop for the player all week and it has emerged that Fulham are also planning to make a £1m move for the 20-year-old after the departure of Louis Saha to Manchester United.

The Cottagers are one of a number clubs - including Southampton, Liverpool, Everton and Birmingham - who have sent scouts to assess the player's ability.

Regardless of whether Sunderland fail, as seems likely, to acquire the services of Stead, McCarthy will focus on trying to make loan additions.

The departure of full-back Michael Gray to Blackburn on Tuesday has eased the Stadium of Light of the 29-year-old's lucrative pay packet.

And McCarthy, whose side have a home clash with Preston tomorrow, admits Gray's switch will help to strengthen his hand in the transfer market.

"It's another salary off the wage bill which was huge and crippling," he said. "It's been a long process and everybody who has been working to try to reduce it have done a good job.

"It leaves us bare at times when we have games in numbers. But it will improve my chances. Having lost Micky's salary off the wage bill it will enable me to get a player or two on loan."

McCarthy would love to make Newcastle's Steve Caldwell one of those temporary captures.

Caldwell is out of contract in the summer but the Magpies are reluctant to allow him to leave before the end of the campaign.

McCarthy said: "We are no further forward with him. There is an interest and we'll see what happens. The transfer window doesn't affect us, so we'll just have to wait and see. There was never any thought of us trying to get him before Saturday."

McCarthy still expects Sunderland's third-choice goalkeeper Thomas Myhre to depart Wearside despite the breakdown of a permanent switch to Crystal Palace.

Myhre's three month loan deal came to an end last weekend and Palace boss Iain Dowie was keen to keep him.

However, a breakdown in contract talks has led to the Norwegian - also attracting interest from West Ham - returning to the North-East.

And McCarthy said: "He is available and he has been since the summer. I have heard a number of clubs are interested in him."

* Patrick Mboma, once on loan at Sunderland, netted the first hat-trick of this year's African Nations Cup as Cameroon beat Zimbabwe 5-3.

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