The transfer of Jefferson Farfan from Schalke to Wolfsburg broke down on Monday despite both clubs having reached an agreement over a transfer fee.
According to reports in Germany, the player, who had also agreed personal terms with the Wolves, went back to Schalke and demanded a pay-off to be released from his contract, which expires in 2012. The Royal Blues refused this.
"I can confirm that we were seriously interested (in Farfan) and we had reached an agreement with the player and, in the end, also with Schalke,'' explained Wolfsburg's managing director Dieter Hoeness on his club's website.
"However, the player and his club clearly could not agree on a pay-off and so we decided not to wait any longer and ended the matter.''
Wolfsburg instead signed Germany international Patrick Helmes from Bayer Leverkusen, leaving Farfan in Gelsenkirchen where his antics do not appear to have caused too much anger.
"I am delighted that Farfan will continue to strengthen our team,'' their manager Felix Magath to Bild.