AC Milan chief Adriano Galliani has confirmed that negotiations for Carlos Tevez were called off after Alexandre Pato confirmed his desire to remain at the San Siro.
Sky Sports revealed on Thursday that Milan had halted negotiations with Manchester City over a deal for Tevez.
Galliani had flown into England earlier in the week to meet City officials as he hoped to thrash out a deal for the Argentina international, having already agreed personal terms with the wantaway striker.
However, it also emerged on Thursday that a possible deal that would have taken Pato to Paris Saint Germain also broke down, which was seemingly set to be used by Milan to fund the Tevez transfer.
Galliani confirmed that the two deals were reliant on each other and for that reason discussions with City broke down.
"I won't talk about Pato's refusal to join PSG, but he wants to remain with Milan", he told Sky Italia as he arrived back in Italy.
"He was thinking about this for a few days, but the two operations were bounded between themselves and both had various clauses.
"I believe in fate and remember that when Gianluca Vialli said no, then we brought in Marco Van Basten. If Pato wants to remain, then we hope he will do well with Milan.
"We have the utmost faith in the strikers at our disposal, also trusting in Antonio Cassano's swift return, as he will become our big new signing."
Inter Milan are now believed to be preparing a new offer for Tevez, something which Galliani did not want to be drawn on.
"Will Tevez go to Inter? I have considered this as a possibility, but prefer to keep it to myself. I am in any case very happy that Pato has made this decision," he said.
"I do know what is happening with Tevez, but don't want to comment right now. Will we call Manchester City again? We'll see."