Flamengo and AC Milan have nearly reached an agreement on Ronaldinho's transfer, according to the hierarchy of both clubs.
Blackburn had wanted to sign the former World Player of the Year, while the 30-year-old was also quoted as saying that he wanted to return to his first club, Gremio.
But Flamengo look set to win the race for Ronaldinho, although the final details of any move need to be negotiated over the next few days.
Flamengo president Patricia Amorim told G1: "This hasn't been an easy, calm discussion. But it is important that Flamengo and Milan reach an agreement."
Sealed the deal
Amorim and Milan vice-president Adriano Galliani met early on Saturday in Rio de Janeiro.
Galliani said: "Ronaldinho is 99.99 per cent Flamengo's."
Gremio officially gave up on their efforts to sign the playmaker, saying that in the final moments of the negotiation the club was asked to pay an extra amount to Milan.
"We had sealed the deal. The player was going to come to Porto Alegre to sign the contract," said Gremio president Paulo Odone.
"When I was contacted to negotiate the new value we realised we were going over our limit so I ended the negotiation."