Manchester City bowed out of the race to sign Dani Alves after they discovered Paris Saint-Germain were offering almost double what they were willing to pay.
Alves was a free agent having been released by Juventus earlier this month but it is believed PSG have offered the Brazilian a two-year contract worth a total of £25m in wages (£230k a week) over two years.
The 34-year-old was confirmed as PSG's latest signing on Wednesday afternoon.
Sky Sports News HQ understands Pep Guardiola was keen to rekindle his relationship with Alves, having worked so successfully with him at Barcelona.
City believed they had a deal agreed and Alves was due to fly to Houston with the rest of the City team on Monday.
However, over the weekend, PSG contacted Alves' representatives and gazumped Guardiola's agreement.
City were only willing to pay around £6m a year (£115k a week) for 34-year-old Alves, who many expected would end up as their second choice right back behind Kyle Walker at the Etihad.
Guardiola will now have to turn his attentions to new targets, but Alves' U-turn will do little to help strengthen their hand in protracted negotiations with Premier League rivals Tottenham for England right-back Walker.
City have already signed Ederson and Bernardo Silva this summer, with several more signings expected before September.