Town have been priced out of a permanent move for Leicester City midfielder Khanya Leshabela according to Luton boss Nathan Jones.
The 21-year-old spent a trial spell at Kenilworth Road during pre-season, as he went on a week-long trip to York and featured in games against Rochdale, Bedford Town and Boreham Wood.
The South African U20 international, who began his career with the Foxes, had signed a three-and-a-half year contract in January 2019 and made his Premier League debut during City's 5-0 victory over Sheffield United in March
However, although wanting to add a midfielder to his squad, with Leshabela not quite ready to challenge for a first team berth, Jones said: “He’s not with us now, he’s gone back to Leicester as we weren’t able to reach a deal.
“We really liked him to be fair, it’s just finances involved to be honest with you.
“We couldn't do it with what we've done and spent, it became something that we didn't pursue after that.
“But he was a fantastic lad, really loved it here, did really well I felt in pre-season.
“It’s just I don't think that’s something we're going to pursue."