Oxford United boss Denis Smith has denied reports linking him with the vacant Gillingham manager's position because of the frustrating lack of money at the Manor Ground.

Smith (above), who is having to work within a strait-jacket budget, has been able to offer only one-year deals to most of his out-of-contract players, and several of them have rejected them.

But rumours that Smith might walk out to join a club where he can manage with more freedom, have been rejected. "I'm in the area, I like the club, I'm not going to walk away," he insisted. "I do feel like I'm banging my head against a brick wall sometimes, but I want to do a good job here at Oxford.

"I can't say that agents haven't approached me about some positions. I haven't even thought about the GIllingham job, but there are a few around, not just at Gillingham - there's Wigan, Notts County and Bristol City as well.

"I've started something here," he added, "I just get frustrated because I want to do it well and it's very difficult."

Some of the rumours that Smith - whohas yet to sign a contract - might be on his way, spread when he was quoted as saying "now I've got to get my life sorted out" after Joey Beauchamp delayed his decision on a new contract.

But Smith was referring to other personal matters - he goes into hospital tomorrow for an operation because of recent back problems.