Luiz Adriano has reportedly called off his €14m transfer to Jiangsu Suning FC and will return to Milan.
The striker had flown out to China last week to complete his medical and sort out a work permit.
It had all seemed to be on track, but late Tuesday evening Brazilian media GloboEsporte.com claimed Luiz Adriano pulled the plug on the whole deal.
Sky Sport Italia contacted his entourage, who confirmed there were issues between the player and the Chinese club.
He could now fly back to Italy and train with Milan on Thursday.
It would be a huge twist in the tale, as Milan were happy to make a profit on the forward they signed from Shakhtar Donetsk for €8m over the summer.