Arsenal and Tottenham target Bernard has signed for Ukrainian side Shakhtar Donetsk in a deal worth £21.5m.
The Brazilian midfielder was linked with a move to Europe early in the summer, with both the Gunners and Spurs believed to be interested in his services.
The 20-year-old was advised by his Brazil team-mate Hulk to join Porto, and it had been thought that a deal was in place that would see the Atletico Mineiro youngster head to Portugal, but he has instead joined the Ukrainian Premier League champions.
A statement released by the club of their official website read: "Shakhtar Donetsk signed a five-year deal with Bernard.
"The transfer fee for the Brazilian midfielder, who previously played for Atletico Mineiro, is 25million euros (£21.5m)."
Bernard will be a direct replacement for the recently departed left winger Willian – another to be linked with a move to White Hart Lane for some time – who joined Russian club Anzhi Makhachkala in January.
He will clink-up with fellow Brazilians Douglas Costa, Luiz Adriano and Fred, with the lack of foreign player restrictions meaning the club can tap into a wealth of South American talent.
Bernard scored 22 goals in 100 appearances during his three-year spell with Mineiro, and he has already made five international appearances, having made his debut in November 2012.
He helped the Brazilian club overturn a two-goal deficit in the final of the Copa Libertadores to win the two-legged tie against Olympia to win on penalties, and both north London clubs will have been disappointed to have missed out on the hot prospect.