Several sources are reporting Milan will abandon their bid to sign Axel Witsel from Zenit.
Sky Sport Italia and Tuttomercatoweb are suggesting talks have reached an impasse and could be interrupted permanently.
The Rossoneri offered to take Witsel on loan for €3m with option to buy for €22m that would become mandatory after 20 games.
However, Zenit St Petersburg are adamant they want the option to be mandatory regardless of how many appearances he makes this season.
Milan chief Adriano Galliani is also in negotiations with Lazio President Claudio Lotito for Alessandro Matri’s loan to the Aquile.
Meanwhile, defender Cristian Zaccardo has officially been sold to Carpi, signing a contract to June 2017.