The midfielder had himself previously confirmed a return to Turkey, but disagreements between the two clubs surrounding the transfer fee have caused the deal to be called offFelipe Melo's move to Galatasaray from Italian champions Juventus has collapsed, according to a report in Milliyet.
Goal.com exclusively revealed on Thursday that the transfer was back on, after talks between the two parties had broken down last month.
The two clubs have been locked in negotiations for the past few days, with a permanent move mooted after the midfielder spent the 2011-12 season on loan at the Turk Telekom Arena.
The midfielder himself had confirmed his return to Turkey, having made 36 appearances and scored 12 goals to propel Galatasaray to the Super Lig title last season.
The report in Milliyet states that wrangling over the fee has caused the deal to be scuppered.
The Bianconeri had lowered their €13 million asking price to €8m, to try and accomodate the Turkish side's bid, which stands at €6m, but their difficulty in agreeing a fee has now caused the deal to break down.
Another issue has also been the 29-year-old's management company Promoesport, who are reportedly seeking €1.2m in commission as part of the switch.
Nevertheless, Gala are reported to have closed off the deal, and are instead now reviewing other midfield options.
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