Bayern Munich general manager Uli Hoeness has admitted defeat in trying to sign Schalke goalkeeper Manuel Neuer.
The 23-year-old shot-stopper is seen as one of the most promising young keepers in Germany.
Bayern recently succeeded in capturing striker Mario Gomez from their rivals but Hoeness has admitted defeat in this case.
He told Kicker: "We have not received any new info from Schalke nor Manuel Neuer.
"We think the proposed deal has broken down."
Neuer earned his first senior cap against the United Arab Emirates earlier in June and is due to be the starting keeper for the German Under 21 side in the upcoming European championship.