Ruud van Nistelrooy's record £18.5million transfer to Manchester United from PSV Eindhoven has collapsed.
Both clubs pulled the plug on the deal after PSV would not agree to United's extra fitness tests on van Nistelrooy's injured knee.
United wanted the Dutch international striker to prove his fitness in a match before they would complete the transfer. However PSV refused to agree to this condition and the on-off deal has been shelved indefinitely.
United claim they still want to sign van Nistelrooy and they may revive the transfer when he makes his comeback and proves he has fully recovered from his medial ligament injury.
In a statement the club said: "Manchester United is very disappointed that the transfer of Ruud van Nistelrooy from PSV Eindhoven cannot proceed at this present time. As reported on Tuesday, April 25, 2000, further tests were necessary for Manchester United to proceed with the transfer.
"The discussions that have been held between all the parties failed to reach agreement as to the extent of these tests and as a result of this difference in opinion, we cannot proceed at this present time.
"Manchester United wish Ruud every success with his rehabilitation programme and will continue to monitor the situation very closely in order to achieve our desire to make him a Manchester United player."
PSV president Harry van Raay and van Nistelrooy met today and refused to agree to United's extra conditions. Van Nistelrooy had stayed in Manchester for an extra 24 hours to carry out additional tests and the pair did not want any further delay to the deal, which would have been a British record.
Van Raay said: "There is, at this moment, a difference of opinion which cannot be resolved today. Maybe in the future but I don't know. The question is whether the knee is stable or not stable and if it's not stable there may be a problem.
"He has recovered very well, better than even our doctor expected but, even when he is recovering well and the knee is stable, he does not seem able to do what the doctors of Manchester United feel is necessary to fulfil their medical tests."
Van Raay claimed the transfer could yet go through, but he also hinted that he may sell van Nistelrooy to another club unless United change their position.
"I respect the position of Manchester United and Manchester United say they can understand the position of PSV and Ruud van Nistelrooy," he said on SkySports. "I have the problem that if Ruud van Nistelrooy is leaving PSV I need a replacement striker and my preference is to resolve situation in the course of the next week.
"We will discuss it further and I will not have contacts with any other group during that process. That is not my way of doing business. Next week there will be a meeting again between Man Utd and PSV.
"It would not be fair to talk with other possible candidates at this stage as Manchester United is a neat and fair club. If we come to conclusion that a transfer is not possible then there could be other clubs involved."
PSV spokesman Pedro Salazar-Hewitt claimed van Nistelrooy was opposed to United's extra fitness checks because he feared they might jeopardise his recovery.
"They are some conditions which have been requested by the United medical staff and he doesn't agree with them from his own principles because they are going to put in danger his rehabilitation," he said.
"Ruud van Nistelrooy still wants to play for Manchester United and it's not that there's any change in his feelings towards the club, the manager - Mr Ferguson - the chairman or anybody there.
"It's just about the medical difference of opinion. That's why we are at this impasse."
Salazar-Hewitt claims van Nistelrooy is recovering well from the medial ligament injury he suffered seven weeks ago. The club had hoped to have him back in action for their final league match against NEC Nijmegen on May 14.
However Salazar-Hewitt claimed no date had been pencilled in for the 23-year-old's comeback. "I can't tell you when he will be back because you can never put a deadline on injuries like this," he said. Van Nistelrooy, himself, is keen to return to fully fitness but respects United's standpoint.
He said: "My rehabilitation process is most important for me. I want to get fit and play as soon as possible.
"Both parties have respect for each others feelings. Manchester United is a great club and I have a good feeling about the club and the people around the club."
The van Nistelrooy transfer saga has been one long embarrassment for United from the moment Van Raay angered the Reds by prematurely announcing the deal last Thursday night. United boss Sir Alex Ferguson was furious and his mood worsened when van Nistelrooy held a press conference on Friday before the deal had been completed.
Then there were the farcical scenes on Tuesday when van Nistelrooy was turned away from Old Trafford and his press conference aborted after he failed a fitness test on his knee. United said then that the deal was only on hold while they carried out extra tests, but it is clear now that it is highly unlikely that the transfer will ever be completed.