The Argentine is back at Madrid after a loan spell with Roma but is still out in the cold with Mourinho, and the Brazilian side had attempted to acquire his servicesFernando Gago, but were unsuccessful in their efforts to take the Argentina international from Real Madrid.
The former Boca Juniors midfielder is still under contract at the Santiago Bernabeu, but is not considered part of coach Jose Mourinho's first-team plans. Gago spent the 2011-12 season on loan in Italy with Roma, before returning to Spain at the end of the term.
Cruzeiro, hoping for a positive Brasileirao campaign after enduring a torrid relegation battle during 2011, have been rumoured as a possible destination for the 26-year-old, but director of football Alexandre Mattos explained that their enquiries did not end positively.
"Cruzeiro asked about the player's situation, but things did not fit together. It never led to a negotiation," the official explained to Radio Bandeirantes on Tuesday evening.
Gago, who moved to Madrid in January 2007 under the Ramon Calderon regime, has appeared 38 times for Argentina, and has become a regular part of Alejandro Sabella's first XI as they attempt to secure a place in the 2014 World Cup.