MillersMAD understands Mark Robins has continued to track the striker after showing initial interest during the January transfer window, when the target man was on loan at Darlington.
Posh Director of football Barry Fry has stated a 'substantial offer' believed to be in the region of £175,000 including add on fees, has been made for the player, which will probably end Lincoln City's interest who are also keen to close a deal.
Fry refused to name the bidders but did confirm it's a League Two outfit.
"As you would expect for Liam there has been plenty of interest from League Two and one club has offered a substantial amount of money. But in all honesty I really don't believe Lincoln can match that price." Fry told TEAMtalk.com.
Hatch, 27, who netted 9 goals last season on loan at Darlo, has made just one start for Posh since he joined from Barnet in 2008 and has 48 goals in 152 career starts.