ANGE POSTECOGLOU has confirmed Riley McGree won't be joining Celtic after "initial discussions" over a move to Parkhead.

The Celtic manager admitted he was interested in the midfielder, 23, but conceded the player has decided to "look elsewhere" after preliminary talks.

Reports had suggested a deal was all but done for McGree to become Postecoglou's fifth January signing before speculation over a late breakdown in talks.

But Postecoglou cleared up the situation as he insisted the player moved on to look at different options after speaking with the club.

Outlining the situation with the midfielder, he said: "Riley McGree was somebody we had an interest in because of my association with him.

"Obviously I know the player very well, but after the initial discussions he's decided to look elsewhere which is fine.

"But we have not spoken to one other player apart from the ones we've brought in, including Johnny Kenny."

It comes as Postecoglou also ruled out any sale of Stephen Welsh amid reported interest in a loan and potential permanent transfer move from Udinese. 

The Parkhead boss simply stated: "He's not going anywhere".

The Serie A club have since moved to sign ex-Celtic defender Filip Benkovic after his contract with Leicester was terminated by mutual consent.