Posh manager Darren Ferguson, son of Manchester United boss Sir Alex, was linked with a move to replace Mark Hughes as City boss on Sunday.
“Neither the club nor Darren have heard anything from Manchester City or any other club and clearly this particular story is just paper talk, at the moment,” Fry told the Peterborough Evening Telegraph.
“One of the things we talked about in Spain with the chairman last week was the clubs we would let Darren go to. Obviously we would not stand in his way if a Premier League team came after him.
“It hasn’t happened yet, but it will in the future. He will be linked with every job that becomes vacant, not just because he is successful, but because of the way he has achieved that success.
“Darren will be a top-class manager at the highest level. That’s a certainty, but I suspect Man City won’t be his destination just yet.
“If they do come in for him the compensation we would be after would rise seeing as they have super-rich owners!”
