Sao Paulo starlet Lucas Moura has confirmed he is likely to reject a move to Manchester United and instead join Paris Saint-Germain.
United were widely expected to win the race to sign Moura this month after manager Sir Alex Ferguson confirmed his interest in the Brazil international, but reports in South America at the start of the week suggested a move to PSG could be on the cards.
Inter Milan are also keen on signing the 19-year-old, but president Massimo Moratti claimed PSG were ready to offer €45million for the playmaker - a figure he is unwilling to match and one which United are yet to come anywhere close to.
United are believed to have tabled a bid in the region of €30m.
Sao Paulo on Tuesday confirmed PSG's interest in Moura, and now the player has admitted that talks over a move to Ligue 1 are underway.
Speaking to Folha after Brazil's Olympic Games semi-final win over South Korea, the teenager said: "This is a good thing. I'll stay at Sao Paulo until the end of the year.
"Things are well underway."
Speaking to Globo Esporte, Moura added: "No doubt that would be better because I can help Sao Paulo a bit more.
"I have always said that I want to win a title before leaving and qualify the team for the Libertadores Cup.
"If it happens in January, I'll be able to do that for Sao Paulo.
"I'm focused on the national team. I can only say something after the Olympics. It's well underway, but not done.
"I talked to Thiago Silva and Leonardo, they said many good things about the club, the project they are implementing there."