Schalke coach Felix Magath is adamant his side are not attempting to beat Wolfsburg to the signing of Juventus playmaker Diego.
Both Bundesliga sides have been linked with the Brazilian, who joined Juve from Wolfsburg last summer but failed to impress in his debut season in Serie A.
Juve coach Luigi Del Neri hopes to keep the player in Turin but it is believed that talks have taken place with Wolfsburg over a €17 million move for the 2006-07 Bundesliga Players' Player of the Year.
However, having signed Raul from Real Madrid this summer, Schalke are not entering the bidding for Diego. Bremen's own playmaker Zvjezdan Mismovic is a more likely target.
"We won't sign Diego," Schalke coach Magath said. "Anyway, we are following other talented players and someone should arrive."