Parry, speaking at Harry Kewell's press conference earlier today, said: "I'm not sure I want to get drawn into a slanging match with Professor McKenzie, the discussions have been cordial and long may they stay that way.
"But no, we didn't make an offer of £7m on July 4. I don't know what Prof McKenzie means, I just know the realities of the case. I'm just telling you the realities of the situation.
"Harry here has turned his back on some huge offers over the last few days, make no mistake, he has not come here purely for money.
"He's well rewarded and rightly so, but he's come for football reasons because there has been enormous interest and temptation.
"But once he had made up his mind to come to Liverpool he has stuck with that right down the line, there has never been an attempt to change the terms and the deal.
"Our dialogue with Leeds has been as straightforward as transfer deals are, quite why it has become all blown up is a bit of a mystery. What needs to be examined? Just look at our experience with Steve McManaman, we lost a lot but that's the reality of the Bosman situation, it is law.
"That's what players are allowed to do. We agreed a deal with Leeds for Lee Bowyer, a perfectly straightforward one but we couldn't meet his financial terms, it was as simple as that so he didn't come.
"Look at the Beckham deal. Manchester United had agreed a deal with Barcelona at one price but the player didn't want to go. If you look at the numbers since he has gone to Real Madrid for a lower fee.
"That is the reality of life. You can't do deals in isolation, it's not about clubs horse trading players as commodities, it's about players wanting to go. Leeds have had it with Paul Robinson. They agreed a deal with Aston Villa and the player didn't want to go, he's still there.
"That's the reality of how life works. Where is the problem? It's a judgement for Leeds, they either take what we offered and they did, or they decide to keep Harry for 12 months and lose him.
"They could have said no at any stage but again to Harry's credit, he wanted to come to Liverpool and not anywhere else. It was a footballing decision and it was important he believed in Gerard. That's a tremendous testimony to him.
"It's very straightforward. Harry wanted to come here. So the judgement is for Leeds - do they take what we can get or not?
"As far as Liverpool is concerned the situation is crystal clear, money has gone to Leeds and money has gone to Harry as part of his contract, there is nothing else and suggestions to the contrary are wholly without foundation at all, absolutely nothing untoward.
"There is no mystery. We have paid Harry through his contract and then Leeds United, those are the only agreements in place."