West Ham midfielder Lucas Paqueta is facing a Football Association investigation for alleged betting breaches and will not be joining Manchester City this summer.
The Brazilian had been closing in on a move to the champions in a £70 million transfer, with manager Pep Guardiola keen to bring in the 25-year-old after Kevin De Bruyne was ruled out until the New Year.
But the move is all but dead after it emerged that Paqueta is the subject of an FA investigation for alleged betting breaches.
The probe, which was originally reported by the Daily Mail, is understood to have been called after bets were placed in his native Brazil relating to in-game incidents, with the activity reportedly traced back to the area where the player grew up.
If found guilty, Paqueta could face a lengthy suspension. Brentford striker Ivan Toney was previously banned for eight months after admitting 232 betting breaches and is not due to return until January.
Paqueta was left out of the Brazil squad on Friday by coach Fernando Diniz for the forthcoming South American qualifiers for the 2026 World Cup.
"It's a matter of preservation, of letting him resolve these issues, which go beyond football and keeping him at ease to work on this matter," Diniz said.
"This is a situation (illegal betting) that we also have here in Brazil and it takes time for things to settle down and clarify."
City, meanwhile, will have to look elsewhere for a solution after De Bruyne was ruled out for several months after an operation to fix a hamstring issue.
"We are talking a lot with [director of football] Txiki [Begiristain] about what we have to do, maybe we need to add someone else," Guardiola said in a press conference on Friday.
"My opinion is I like a small squad. But the blow from Kevin changes the perspective.
"He is a very important player and it is not one or two weeks. It's four or five months. So we have to reflect a bit on the squad, and think about what we have to do."
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