Denton Wilde Sapte is to retain just one of the seven trainees due to qualify at the firm in March.

Two trainees withdrew from the qualification process, but of the five remaining, Dentons chose to offer a position to only one. The decision means the firm's retention rate stands at just 20% of those applying and 14% of the total intake.

In contrast, 63% of those applying in September 2009 were retained, while 78.5% of those applying for positions in March 2009 were kept on.

Dentons said the decision was made based on tough economic conditions, with the firm deciding there was not the business case to recruit extra newly-qualified (NQ) lawyers.

Trainee partner Jeremy Cape said: "Our focus is still very much on the productivity of our fee earners and improving the profitability of the firm in a market that remains challenging. We examined whether the departments were sufficiently busy to justify a business case for recruiting extra NQs in those departments."

The news comes after Lovells yesterday announced that it will retain 81% of its March intake, with 26 of 32 applicants winning jobs at the City firm. SJ Berwin is to retain 10 of 14 qualifying trainees next month, with just one trainee opting not to apply.

Other firms to have announced their March 2010 retention rates include Linklaters, which is to retain 76% of its March qualifiers, keeping on 47 of the 62 applying for a role. Allen & Overy found jobs for 87% of its qualifying intake, marking an increase on its projected retention rate of 70%.