The issue of his contract was the centre of discussions in a meeting between the club's president, Luis Alvaro Ribeiro, director of football Pedro Luis Conceicao, and the 21-year-old's entourage which included his brother and father.
However, Santos were informed by Ganso's representatives during the negotiations that the player would prefer a switch to Europe, rather than sign a new deal at the Peixe.
"Santos admit that in a certain period, we have to let the player go," president Ribeiro told Lancenet.
"He left here knowing the ball is in his court and we know he wants to play abroad. But, we have no intention to lower a transfer fee as we do not want to sell him."
Chelsea, Inter and AC Milan have recently been linked with the hotshot, who has been scoring for fun at Santos.
Carlo Ancelotti's side are believed to have previously monitored other Brazilian stars Neymar and Alexandre Pato, while 17-year-old Lucas Piazon is set to join the club from Sao Paulo.