Sao Paulo have reportedly accepted a bid from Inter Milan for Lucas Moura, according to Sky Sports Italia.
Moura, one of the prime targets for Manchester United this summer, is with the Brazil Olympic squad currently and has constantly said he will make a decision only after the London Games are over.
However, that has not stopped Inter officials flying to Brazil to try and manufacture a deal, and, according to the report, the Brazilians have accepted a €27 million (£21.1 million, $32.8 million) fee, rising to €32 million (£25.1 million, $39 million) based on appearances and success.
Inter president Massimo Moratti had said the club would not be held at ransom for Moura, with Sao Paulo reportedly asking for €40 million (£31.3 million, $48.7 million).
"Holding an interest doesn't mean you're willing to accept certain terms," Moratti told Sky Sport24. "(Inter sporting director Marco) Branca's not there (Brazil) to finalise anything. The situation is ongoing. We'll see."
The report further suggests, the only thing that remains to be sorted out are personal terms between the player and Inter.
The deal seems to be puzzling as United reportedly had a bid of €35 million (£27 million, $42.5 million) turned down by the club. Sao Paulo had said the English Premier League giants were the only serious contenders, with Inter just showing a cursory interest. However, if the fee, indeed, has been accepted, it would appear the amount bid by United, was considerably less than initially reported.
Sao Paulo had said they would be open to further negotiations, while also hinting that a better contract for Moura, to tempt him to remain in Brazil, might also be considered.
It remains to be seen if a fee has been actually agreed or if United can still come back, if Sir Alex Ferguson deems it necessary of course, into the running for the exciting 19-year-old.
Meanwhile, Rio Ferdinand denied the FA's charge of "acting in a way that was improper and bringing the game into disrepute" for his "choc-ice" tweet on Ashley Cole, and requested a personal hearing.
An FA statement confirmed Ferdinand's intention to appeal the charge. "Manchester United's Rio Ferdinand has today (Thursday 2 August) denied an FA charge of improper conduct in relation to comments posted on Twitter.
"The allegation is that the player acted in a way which was improper and/or brought the game into disrepute by making comments which included a reference to ethnic origin and/or colour and/or race.
"The player has requested a personal hearing."
