Manchester City have lost out to Italian side AC Milan in the race to sign Barcelona playmaker Ronaldinho.
"AC Milan and Barcelona have reached an agreement in principle over the transfer of Ronaldinho," the Serie A club said on their website.
"The player will be in Milan on Wednesday to undergo a medical and sign a contract that will keep him at Milan until 30 June 2011."
City had reportedly bid £25.5m for the 28-year-old Brazilian.
But Italian newspaper Gazzetta dello Sport reported on its website that Milan will pay Spanish side Barcelona just £14.6m for his services, with the figure likely to be increased by performance-related bonuses.
Milan chief executive Adriano Galliani has been in Barcelona for talks with the club and the player for two days.
The two-time Fifa World Player of the Year's time at Barcelona effectively came to an end in June when new manager Pep Guardiola announced the playmaker was surplus to requirements.
Nevertheless, the Catalans were not prepared to release Ronaldinho to join Dunga's Brazil squad for next month's Beijing Olympics.
Ronaldinho helped Barcelona win back-to-back Spanish league titles (2004-05, 2005-06) and the Champions League in 2006, but failed to cement a regular place in the starting XI last season because of injury and fitness issues.
"AC Milan and Barcelona have reached an agreement in principle over the transfer of Ronaldinho," the Serie A club said on their website.
"The player will be in Milan on Wednesday to undergo a medical and sign a contract that will keep him at Milan until 30 June 2011."
City had reportedly bid £25.5m for the 28-year-old Brazilian.
But Italian newspaper Gazzetta dello Sport reported on its website that Milan will pay Spanish side Barcelona just £14.6m for his services, with the figure likely to be increased by performance-related bonuses.
Milan chief executive Adriano Galliani has been in Barcelona for talks with the club and the player for two days.
The two-time Fifa World Player of the Year's time at Barcelona effectively came to an end in June when new manager Pep Guardiola announced the playmaker was surplus to requirements.
Nevertheless, the Catalans were not prepared to release Ronaldinho to join Dunga's Brazil squad for next month's Beijing Olympics.
Ronaldinho helped Barcelona win back-to-back Spanish league titles (2004-05, 2005-06) and the Champions League in 2006, but failed to cement a regular place in the starting XI last season because of injury and fitness issues.
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