Santos have apparently pulled out of negotiations for Robinho after spending €6m on Cruzeiro playmaker Walter Montillo instead.
The Brazilian club probably does not have sufficient funds to complete both transfers this month.
They officially signed Montillo by paying €6m for 60 per cent of his rights today.
That does not necessarily mean Robinho will stay at Milan, as other Brazilian sides like Flamengo and Fluminense are also in the race.
Milan have set Robinho’s price-tag at €10m.