Posh were keen to sign the 23 year-old German after an impressive 11-game loan spell at the Weston Homes Stadium last season.
Benda is third-choice ‘keeper at Swansea, but under contract at the club until June, 2024.
Posh director of football Barry Fry has revealed that the Championship club want £1million for Benda. They did offer Benda and another player in exchange for a key Posh player, but that deal was rejected by London Road boss Grant McCann.
Swansea left-back Nathanael Ogbeta is thought to be the other Swansea player on offer. Posh tried to sign him from Shrewsbury last January, but the 23 year-old joined the Swans instead. He has yet to start a game for the club.
“I spoke to Steven as he is still in Peterborough,” Fry said. “He would love to join us, but we are not getting anywhere with Swansea. They wanted £1 million and there’s no way we are paying that for a goalkeeper. Russell Martin (Swansea manager) then suggested an exchange of two his players, including Steven, for one of ours, but that is not going to happen. Steven’s wages would also be a problem for us.
"I’d say it’s (signing Benda) unlikely to happen now and we will look elsewhere. The manager wants two goalkeepers as well as a couple of midfielders, but there has been very little activity yet as clubs won’t sign players if they have to pay the June wages.
"Since coming back from Las Vegas I’ve been at all the finals at Wembley and I will be at both play-off finals this weekend. Lots of conversations about players take place at these matches, but nothing definite will happen.”
Fry revealed there was never had any interest in Hull City forward Mallik Wilks despite the player’s success when current Posh boss Grant McCann won the League title with the Tigers in the 2020-21 season. Wilks has been given another year at Hull, but is thought to be available for transfer.
McCann’s Hull captain Richie Smallwood, a regular promotion winner, has been released by the Tigers, but he is settled domestically in the north which could make it difficult to persuade him to drop down a division and move south.