Luis Fabiano's proposed move from Sevilla to AC Milan has reached a "dead end", according to the Italian club.
The Brazil striker was believed to be on the verge of joining the Rossoneri for a fee in the region of £20million.
But Milan director Leonardo Cantamessa has now revealed that the two clubs have reached a stalemate over the proposed transfer.
"The negotiations for Luis Fabiano have reached a dead end," he said. "You need to ask (vice-president Adriano) Galliani if there will be another offer, but at this moment I really don't think so."
Elsewhere, Coach Ciro Ferrara has revealed that Juventus are close to completing the signing of Felipe Melo.
Juve turned their attention to the Brazil and Fiorentina midfielder after being unable to agree a fee with Udinese for Gaetano D'Agostino during a protracted transfer saga.
"Everyone knows I admire D'Agostino and we followed him for a long time, but for various reasons the deal did not go through," admitted Ferrara.
"He didn't arrive and so we did not think twice about taking Melo when the chance came along.
"We were convinced Melo would be the right choice and we based our selection on the value and quality of the player. We made an important move for an important player.
"He completed his medicals and now I hope he puts pen to paper."
Meanwhile, Ferrara claims Pavel Nedved is considering returning to the club as part of his backroom staff.
Nedved ended his eight-year association with the Turin club at the end of the last Serie A season and has yet to decide whether to play on for one more year.
But Ferrara believes the former Czech Republic midfielder and his ex-Juve team-mate is giving serious thought to taking up a coaching role with the Bianconeri.
"I spoke to Pavel last night and I have the impression that at the moment he wants to take a break, but he's very interested in our proposal," he said. "He will work on the pitch with me. It's not official yet."
Marko Arnautovic has warned Internazionale he will not be happy with a place on the bench when he completes his expected move to the Italian champions.
The 20-year-old FC Twente forward is currently recovering from a fractured foot - with help from the Inter medical staff - before officially completing his 11million euro switch from the Dutch club.
"I'm trying to heal quickly. I am working many hours a day with the medical staff of Inter to recuperate as quickly as possible," he said. "I look forward to training with all my team-mates.
"I want to play, the bench is not enough for me."