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Mark Hughes met Thaksin Shinawatra, the embattled Manchester City owner, for the first time yesterday to discuss a rethink of the club's transfer strategy after being frustrated by Blackburn Rovers' refusal to sell Roque Santa Cruz.

Thaksin was expected to spell out his vision for the club, but top of the agenda was signing reinforcements before the transfer window closes on September 1. Hughes, who was appointed in June, was told that there is money to invest in new players despite growing uncertainty over the owner's position after his refusal to face corruption charges in Thailand.

One of Thaksin's lawyers, Watchara Seangprathum, confirmed yesterday that the City owner and his family are seeking political asylum in Britain because of a “lack of security and freedom” in Thailand, where he served as Prime Minister before being ousted in a bloodless coup in September 2006. In the meantime, with £800million of his assets frozen in Thailand, City have been forced to take out a significant loan to assist Hughes in the transfer market, but increasingly their £12million pursuit of Santa Cruz looks doomed.

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According to Garry Cook, the executive chairman, Hughes is refusing to concede defeat over Santa Cruz, who was a prolific goalscorer under him at Ewood Park last season, but Blackburn's unwillingness to sell the Paraguay forward has forced City to look at alternative targets, such as Diego Milito, of Real Zaragoza. “We made an offer for Santa Cruz last week and were told, in the bluntest possible terms, to forget it,” Cook said yesterday. “We have been told to give up on him. Mark is adamant that we don't, but it's fair to say that the window is closing and that Blackburn have closed it on us.”

Hughes wants to sign at least two players before the transfer deadline, having concluded that the squad he inherited from Sven-Göran Eriksson lacks the mental and physical strength needed for the Premier League.