Anxious Blackburn chiefs have told Duff to "name his price" and become the highest wage-earner in the club's history.
Chief executive John Williams confirmed:
DUFF LINKS
"Damien can have a deal as short or as long as he wants.
"All the stories of hurriedly arranged talks and ultimatums are absolute nonsense and very disappointing to say the least. That is not how we work and, thankfully, Damien is well aware of that.
"We spoke to Damien weeks and weeks ago, long before the World Cup in fact and agreed to resume the discussions after the summer holiday."
Rovers manager Graeme Souness has pledged his future to the club despite the uncertainty surrounding Duff. Souness has already told the Ewood Park board he will sign a new three-year deal when he returns from holiday at the weekend.