Napoli director of sport Riccardo Bigon confirmed Edu Vargas will join Gremio on loan and sees Mario Balotelli as “a situation for the future.”
Vargas had been in advanced negotiations with Sao Paulo, but talks collapsed with the Brazilian club hitting out at the Partenopei in this statement. 
Instead, Gremio are set to pay €1.5m to have the benchwarmer on loan for the rest of the season.
“Something happened with Vargas that I’d never seen before,” director Bigon told Sky Sport Italia.
“He received many offers from South America and we are set to complete a transfer within hours, so it could be made official tomorrow.
“This shows the huge interest around Edu, who will gain experience in a different League. It will be a six-month loan with a series of options, but they will not have the option to buy him outright.”
Napoli director of sport Bigon also spoke about the club’s interest in Manchester City rebel Balotelli.
“It is a very complicated situation and we are complete in terms of our strike force. It is a situation for the future.”