The on-loan Wolves attacker was told this week that Molineux boss Dean Saunders has decided to take up a one-year option on his contract and will recall the player once the Scottish season is over.
But Fenlon admits he has not yet admitted defeat in his bid to keep the life-long Hibs fan in Edinburgh.
He told Press Association Sport: "We have always said we would love to keep Leigh here but it is outside of our control. We are being realistic and we're actively looking elsewhere to see if we can get his type of player in.
"It would be difficult for us to make an offer for Leigh. We're not in a position to throw money at anyone. But while he is here you always have that hope he might be here a little longer and we'll continue to have that hope."