MANCHESTER City's preparation for Saturday's Premiership clash with Wanderers was disrupted with rumours surrounding the future of Maine Road manager Kevin Keegan.

City were yesterday forced into the unusual step of issuing a statement denying Keegan had quit, adding fuel to the fire of speculation that the Blues boss is growing increasingly unhappy with life at Maine Road.

Keegan is finding life tougher in the Premiership with City than he expected at the beginning of the season when he set a top six place as his target.

After two successive defeats his side lies just four points clear of the relegation zone in 16th place with a vital game against Wanderers on Saturday which many see as make or break for the Blues.

The speculation over Keegan's situation is the last thing City needed as they prepare for a resurgent Wanderers who are enjoying their best spell of the season with five points from three unbeaten games and will be hoping to take advantage of the distraction in the City camp.

Speculation of this sort is always a danger following Keegan's decisions to quit his last three jobs as manager of Newcastle, Fulham and England.

The question mark over Keegan's future at Maine Road has been lingering under the surface ever since his arrival but wall-to-wall success in the First Division title-winning campaign kept such speculation out of the media.

A poor start to this season's Premiership campaign sparked rumours that Keegan may again bow to the pressure and after City's 3-0 home defeat to Chelsea on October 19 he responded by giving categoric assurances he would serve out every day of the remaining three and a half years of his contract.

He said on that occasion that the only way he would leave Maine Road is if his board of directors demanded it.

That has not been enough to kill speculation that City are fated to become the fourth job he has walked away from and it rose again to such a degree that City felt it necessary to issue an "unequivocal" denial.

The latest speculation was sparked after Keegan refused to comment following a meeting with club chairman David Bernstein over the amount of cash he will be given to sign players when the transfer window opens.

It intensified after last week's 3-1 defeat at Middlesbrough when Keegan was asked if he would have money to spend and said: "You will have to ask the chairman about the financial situation. I am not in a position to tell you."

City chief operating officer Chris Bird assured: "I can unequivocally deny that Kevin Keegan has resigned from Manchester City.

"There is absolutely no substance to this speculation."

"We met with Kevin last week and like the fans and the board of the club our manager is intent on City moving forward. We are all looking at that as our aim."