AC Milan's deal to sign winger Jonathan Biabiany has collapsed, according to Parma president Tommaso Ghirardi.
The 25-year-old was reported to be set for a switch to the San Siro, where he started his career with Inter, but Parma were only interested in a permanent exit as opposed to the loan deal which Milan had hoped for.
Milan director Adriano Galliani had previously claimed that new boss Clarence Seedorf was a keen admirer of the Frenchman who has also attracted interest from Chinese side Guangzhou Evergrande.
Biabiany has been a regular fixture in Serie A for Parma so far this season and Ghirardi says that the club was not prepared to allow him to leave on loan.
"AC Milan want only the loan, but we consider only a permanent transfer," he told Mediaset.
"We are honoured of the Rossoneri's interest for our very important player, but we are not willing to accept these conditions.
"I think that they won't change their proposal and so the issue is closed."