Ronaldinho has shattered Blackburn's dwindling hopes of completing a sensational deal by confirming that he has reached an agreement to end his contract with AC Milan to make way for a return to Brazil.
The two-time world player of the year was wanted at Ewood Park, but he has made it clear that his wish is to go back to home-town club Gremio.
Ronaldinho has yet to officially announce his new employers, however, it appears certain that he will move to South America after coming to terms which will allow him to leave Milan and join a club outside of Italy.
The 30-year-old's existing contract, due to expire in June, will be cut short in order for him to quit the San Siro, marking a U-turn by Milan after previously stubborn demands from the Serie A outfit.
"We have signed an agreement with Milan, and today I am free to continue my life here in Brazil," Ronaldinho told a media conference in Rio de Janeiro on Thursday.
AC Milan vice president Adriano Galliani, who was also at the conference, said the club had "in principle" agreed to the playmaker's request to play outside of Italy.
But Galliani added: "I want to make it clear that Milan has not ended the contract with Ronaldinho.... Ronaldinho has a full agreement with Milan. We will see what is the best decision for him."
Ronaldinho had accused Milan of playing hardball on Wednesday, but on Thursday he said: "The time I spent playing in Milan was wonderful. I felt part of Milan's family and I will continue to feel that."
The 88-time Brazil international's agent and brother, Roberto de Assis, said the player's future "will be defined over the week, and we will evaluate offers from the clubs" interested in him.
"We have a contract with Milan, but there is an agreement giving us the freedom to negotiate with Brazilian clubs," he said.