Tottenham have failed to persuade Brazilian club Santos to part company with their talented midfielder Diego.
The English side had offered €8.2 million for the 18-year-old, a bid rejected by Santos who then upped the asking price.
When the Brazilian club's deadline for noon today was not met, the talks were considered closed.
Tottenham had wanted Diego to move immediately while Santos had hoped to keep him until the end of the year so he would be available for the rest of the Campeonato Brasileiro.
READ MORE
"We were waiting for an answer but a Santos official confirmed to me that they had closed the negotiations." said Djair da Cunha, Diego's father and agent.
"We will wait now for someone willing to pay what he's worth".
PA