Inter Milan have dropped out of the race to sign Sao Paulo attacker Lucas Moura.
The 19-year-old, who is currently on Olympic duty with Brazil, has strongly been linked with moves to Inter and Manchester United this summer.
However, Inter president Massimo Moratti has revealed that the Italian club are not prepared to meet the asking price, with Paris Saint-Germain reportedly joining the race.
"We would never have gone up to that sum. In any case, there are no regrets that we didn't finish off the move, as the cost was already pretty high a few days ago," he told Sky Sport Italia.
"The £35m that PSG offered is completely illogical and for us it would've been very out of key with our approach. PSG are starting a new era, so they are completely reconstructing the squad."
PSG have already signed Zlatan Ibrahimovic, Thiago Silva and Ezequiel Lavezzi this summer.
Matt Law
