"His chairman wants a ridiculous amount of money and I refuse to pay that," Holloway told BBC Radio Lancashire.
"From what I've seen I'm not going to pay that sort of money."
Holloway added: "I still like him as a lad and he's a good player, but am I going to spend that amount of money that his chairman thinks he's worth? The answer is an absolute no."
Blackpool broke their transfer record for midfielder Charlie Adam in August after paying Rangers £500,000 for the Scotland international.
That man is so committed to try and get us in the Premier League it's unbelievable Blackpool manager Ian Holloway on club president Valeri Belokon And Holloway feels that has alerted clubs who are keen to inflate the prices of potential transfers to Bloomfield Road.
"I've got a problem because Charlie cost me a certain amount of money and you have to look at the value of money that's proven to be," he said. "That was our highest ever transfer purchase so I've got some act to follow.
"If I buy someone for £400,000 he's got to be almost as good as Charlie. If I buy someone for £800,000 he's got to be twice what Charlie is."
But despite club president Valeri Belokon offering the former Plymouth and QPR boss a sizeable transfer kitty, Holloway has warned against the club trying to move forward too far too soon.
"I didn't expect when I took over at Blackpool someone would be getting me a transfer kitty together," he said. "That man is so committed to try and get us in the Premier League it's unbelievable.
"But I've had to try and explain to him what will happen if you try and rush it. You cannot ruin the workforce and their focus by grabbing someone, particularly a foreign player who you don't know much about, who looks good in the last five games or on a DVD.
"I know what the fans want and I want them to want the same thing as me. I want them to enjoy the football we play."