ROI international Duff was rumoured to be making a move to various clubs, namely Liverpool and Manchester United, both of whom were believed to be seriously interested in signing (estimated) £10m Duff.
Souness however claims that no bids, formal ones at least, have been received for the 23-year-old who is apparently not for sale at ANY cost.
Souness said: "We are getting very close to an agreement with Damien on a new contract.
"It is important for Damien because he wants to get it sorted out. In my time here we have not had one offer for Damien," he continued...
"We have had inquiries from Liverpool and Manchester United since the end of the season, but no offer. We don't want one. He is not for sale, end of story."
Its thought that Duff will be playing in the Sunderland match tomorrow. Speculation states that he will be given a more "withdrawn role" behind the new attacking strike force consisting of Andy Cole and Dwight Yorke.
After an excellent series of performances in the World Cup, it really is in Rovers' best interest to keep him at the club...
"All that happened during the World Cup was that our secret got out," said Souness.
"We have known we had a gem for a long time, but this summer Damien got the publicity he would have received anyway had he been at a higher profile club."