Paris St Germain have beaten Manchester United to the signing of Lucas Moura, according to the French club's official website.
The 19-year-old Brazil star had been linked with a move to Old Trafford, with reports suggesting United had tabled a £30m for the Sao Paulo midfielder.
But, Lucas confirmed today he had been in talks with PSG, and it has now emerged that the Ligue 1 side have clinched a deal for the starlet.
The 19-year-old is currently on international duty with the Brazil Olympic team, and set to play for a gold medal against Mexico later this week.
His future had been the subject of intense speculation, with United and Inter Milan seemingly locked in a battle to sign the midfielder. Sir Alex Ferguson admitted his interest in bringing the player to Old Trafford, but "eye-watering" agent fees are believed to have scuppered the deal.
Lucas has now signed a four-and-a-year year deal with PSG, and will join the French club in January 2013.
Sao Paulo claim the fee is a club record for the Brazilian side and they had reportedly been holding out for £34m, but PSG have not released any details regarding the price paid as yet.
Manchester United are likely to instead turn their attentions to Robin van Persie, if they hadn't already done so, and reports suggest Sir Alex Ferguson is preparing another bid for the Dutchman.
But van Persie has not left the Arsenal training camp in Germany yet, as had been reported earlier today.