AC Milan have abandoned talks with Manchester City over the possible transfer of Carlos Tevez following Pato's decision to stay in Italy, Italian news agency Ansa said Thursday.
Milan chief executive Adriano Galliani was holding talks with City and Tevez's agent Kia Joorabchian in London when news filtered through that Pato had turned down a move to Paris Saint Germain.
The decision to walk away from the Tevez negotiations was a direct result of Pato's stance, said Ansa.
Earlier, Italian press reported that Galliani had gone to England to finalise the transfer of the 27-year-old Argentine rebel.
French sources also claimed PSG had agreed a deal over a 28-million-euro move for Pato, potentially rising to 35 million euros with bonuses.
However, the 22-year-old Brazilian's decision to reject the move to PSG, where he could have rejoined former Milan coach Carlo Ancelotti, seems to have put a spanner in the Tevez deal's works.
The news came in stark contrast to rumours throughout the day, in which even Inter Milan president Massimo Moratti threw in the towel, saying he thought Tevez would move to the red half of the city.
Galliani had travelled to London with lawyer Lorenzo Cantamessa and FIFA agent Giuseppe Riso to meet with City and Joorabchian.
He was expected to make a final offer to City, believed to be based around a loan util the end of the season and then a compulsory sale, with certain conditions attached.
Milan last week claimed to have already reached an agreement with Tevez while City continued to inist they were not interested in letting the Argentine leave on loan.
Inter and PSG are also said to be interested in the former Manchester United star, with both allegedly having tabled offers.
PSG may resurrect their interest in Tevez now that they have missed out on Pato, who is dating Milan owner Silvio Berlusocni's daughter Barbara.