Manager Brian Laws said: "Richard and his agent have asked for something they know we can't pay, so I'm very disappointed in a player who has previously told me he wants to be at this football club. We've made him an excellent offer and I'm staggered we are at this point."
Laws, who confirmed he would use the money to strengthen several areas of his squad, added: "I don't want any players at this football club who do not want to be here and if there is a club that want to take Richard on loan with a view to a permanent move in January then we would welcome that."
Wakefield-born Wood, who made his first-team debut at the age of 17, was handed a two-year deal by the Owls before he had completed the second year of his academy scholarship.
The club turned down a transfer request from Wood in the summer of 2008 not long after rejecting a reported £1million bid from from Coventry.