Manchester City’s £80m move to sign Lucas Paqueta from West Ham is off amid an FA betting investigation into the midfielder.
An £80m deal had been agreed in principle last week before West Ham were informed on Wednesday that the Brazil international was the subject of an FA investigation into alleged betting breaches.
There was a very small chance on Friday morning that the transfer could still go ahead but there is now no prospect of that happening. Sources close to the deal hope Paqueta's move to City might still happen in January.
- Stream the Premier League and more with NOW for £26 a month for 12 months
- Transfer Centre LIVE! | Papers - latest headlines
- Get Sky Sports | Download the Sky Sports App
The 25-year-old is due to be interviewed by the FA as part of their investigation and he denies any wrongdoing.
The FA investigation into Paqueta is centred on three yellow cards he was shown in these Premier League games this year:
- 12 March: West Ham 1-1 Aston Villa
- 21 May: West Ham 3-1 Leeds
- 12 August: Bournemouth 1-1 West Ham
The investigation started when a larger than usual number of bets were placed in Brazil on Paqueta receiving a yellow card in West Ham's home game against Aston Villa on March 12.
Paqueta was shown a yellow card by referee Chris Kavanagh in the 70th minute for a challenge on John McGinn.
In the game against Leeds, Paqueta was booked in the 65th minute by referee Peter Bankes for a late tackle on Crysensio Summerville.
On the opening day of this season, Paqueta received a yellow card after 93 minutes from Bankes for pushing an opponent.
The bets were placed from accounts registered in Paqueta, an island off Rio de Janeiro, but the bets were not placed by Paqueta and he denies any wrongdoing.
The bets were reported to the International Betting Integrity Association who alerted FIFA and the FA.
A spokesperson for FIFA said: "As a general policy, we do not comment on whether or not investigations are underway into such alleged cases."
The 25-year-old has been omitted from Brazil's squad for next month's World Cup qualifiers against Peru and Bolivia. Paqueta is expected to play for West Ham's game at Brighton, live on Sky Sports, on Saturday.
Paqueta, who has four years left on his West Ham contract, was booked nine times for club and country last season.
Moyes: Paqueta performed 'really well' in Chelsea win
Despite the investigation, Paqueta started and scored in Sunday's 3-1 home win over Chelsea with Hammers boss David Moyes delighted with his performance after a difficult week.
Moyes said: "65,000 were all cheering him because they know his ability and what he brings. He gives us a different type of player.
"He is a really good player, a hard-working boy and I thought he performed really well."
Doku to undergo Man City medical ahead of £55.5m move
Manchester City have agreed a £55.5m deal to sign Rennes winger Jeremy Doku, who is is expected to travel to the northwest on Tuesday to undergo a medical.
The 21-year-old is seen as a replacement for Riyad Mahrez, who joined Saudi Arabian side Al Ahli for £30m last month.
The Belgium international had been linked with a number of Premier League teams this summer, with West Ham having a bid rejected for him earlier this month.
Should Doku complete the move to the Etihad Stadium, he will become Pep Guardiola's third summer recruit in this transfer window, after Mateo Kovacic and Josko Gvardiol.
West Ham continue Kudus pursuit
West Ham have not given up on signing Ajax midfielder Mohammed Kudus after having an opening bid rejected.
The Ghanaian played the full game in Ajax's draw at Excelsior on Saturday and the Dutch club want him to stay despite him entering his final two years of his contract.
West Ham Technical Director Tim Steidten had been in the Netherlands last week for face-to-face talks with Ajax.
One source has told us West Ham are getting encouragement the 23-year-old is open to the move.
Follow the summer transfer window with Sky Sports
Who will be on the move this summer ahead of the transfer window closing at 11pm on September 1 in England and midnight in Scotland?
Keep up to date with all the latest transfer news and rumours in our dedicated Transfer Centre blog on Sky Sports' digital platforms. You can also catch up with the ins, outs and analysis on Sky Sports News.