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Molby's name has often been mentioned since Adam Pearson announced that he has three managers, working in Divisions 2 and 3, in mind.
New Kidderminster chairman Colin Youngjohns says that it is not a done deal - at least not yet.
"We have had no approach. If and when Hull contact us, we will make a statement.
"The manager has said his short-term future lies here and I have no
reason to dispute that."
The Harriers lost chairman Lionel Newton recently, and the lure of Hull City's prospects is thought to have attracted the former Liverpool player to the job.
City chairman Adam Pearson said last Thursday: "We're getting very close to making what I would call very significant progress. I hope to start talking to various people over the weekend and by the middle or the end of next week we should know exactly who we want. This is a massive decision and we are not going to be rushed."
The Midlands side will receive compensation for the two years remaining on the Dane's contract. Assistant Gary Barnett would be expected to follow Molby to Boothferry Park.
Ironically, ex-City boss Brian Little could succeed Molby at Aggborough. Little - sacked by City a month ago - has spent most of his playing and mangerial career in the Midlands with Aston Villa and Leicester City.