Bayern Munich president Uli Hoeness has said the transfer fee for Hoffenheim forward Sandro Wagner is proving a stumbling block between the two clubs.
Bayern and Hoffenheim both confirmed talks over a January transfer for Wagner earlier this week.
But while Bayern sporting director Hasan Salihamidzic previously said the club are "relaxed" about the negotiations, Hoeness was not so positive.
"It's all about the transfer fee -- and I am told we are currently miles apart. At the moment it looks like our hopes have been dashed," Hoeness told reporters after the club's annual general meeting in Munich on Friday.
Former Bayern player Wagner is under contract at Hoffenheim, the club he joined from Darmstadt in 2016, until 2020, and it has been reported that he could be allowed to leave for a transfer exceeding €10 million.
Hoeness also hopes he can convince Bayern coach Jupp Heynckes to extend his tenure.
Heynckes was appointed interim coach until the end of the season in October -- his fourth spell in charge of the German giants.
Asked if his close friend could stay on beyond next summer, Hoeness said: "I believe it is possible, yes -- nothing is ruled out."