Cristian Zaccardo's decision not to re-join Parma resulted in the end of Milan's chase for the winger, who had already been pictured in the club's apparel
The 26-year-old winger had been pictured in Milan club apparel after agreeing to a deal that would have seen the 18-time Italian champions pay up to £4 million for his services.
However, Zaccardo declined the opportunity to return to Parma, bringing an end to the agreed swap deal and leaving the Rossoneri red-faced following their decision to announce the Biabiany deal before hearing word of Zaccardo's decision.
The French forward almost joined Milan in the January transfer window but the move collapsed after the two clubs were unable to reach an agreement, and the latest near-miss could bring an end to any hope of the club eventually making Biabiany their player.
Milan have confirmed, though, that Fernando Torres will be unveiled as their player on Tuesday evening after completing a loan switch from Chelsea. The Spain international striker will remain with the club for two years, while Marco van Ginkel also joins on loan from the Stamford Bridge side.