Terry Butcher last night assured the Inverness Caledonian Thistle chairman Kenny Cameron that he has not held discussions over the vacant manager's position at Hibernian.

A BBC Scotland report claimed the Englishman had already agreed terms to become Pat Fenlon's successor at Easter Road. But sources at the Highland club said Butcher had emphatically denied having any contact with Hibernian.

Butcher, who joined Inverness in January 2009, took training as normal yesterday and the chairman said that it had been "business-as-usual" for the manager, his assistant Maurice Malpas and the players.

Cameron said: "Hibs have not been in touch with Inverness Caledonian Thistle. "It [the BBC report] is news to me. Terry was out training with the players today and it is business as usual as far as we're concerned."

Butcher and Inverness have held discussions since the summer over a contract extension beyond the end of the season. So far, nothing has been agreed between the two parties.

The 54-year-old has been a success since he replaced Craig Brewster almost five years ago. He narrowly failed to save the club from relegation in 2009 but guided the Highlanders back to the Scottish Premier League at the first attempt by winning the first division title. He has since consolidated their position in the top flight steering them to fourth - the highest finish in their history - and just narrowly missing out on European qualification.

Inverness have also progressed to a second successive League Cup semi-final against Hearts, with Butcher having broken new ground in the competition last season. On Saturday evening after the win over Kilmarnock, he dismissed the link as speculation and admitted Inverness would be a very difficult club to leave.

He could not be contacted last night, but Cameron added: "We are extremely unhappy about a story on the BBC Scotland website in relation to our manager. Wherever this has come from, it is completely untrue.

"There has been no approach to this club for Terry Butcher's services and we look forward to him continuing the excellent job he has been doing in Inverness. Speculation on managerial vacancies is, to an extent, inevitable. But to state as a fact something that is totally untrue is unworthy of BBC Scotland."

A source seemed to reinforced Cameron's claims saying Hibernian were continuing their search for a new manager and that no announcement was imminent.

Hibs have confirmed they will contest the two-match ban offered to Liam Craig for a charge of violent conduct. The Scottish FA compliance officer Vincent Lunny cited the midfielder for an alleged breach of Disciplinary Rule 200 after he appeared to try to kick Hearts' Ryan Stevenson in the face during last week's League Cup quarter-final.