Manchester City sporting director Txiki Begiristain flew to Brazil amid speculation he was preparing an ambitious bid to sign Neymar from Santos ... but we understands Roberto Mancini has targeted fellow Brazilian Paulinho instead.
Paulinho was in the Corinthians side that beat Chelsea in the Club World Cup final last weekend
The 24-year-old, who is valued at around £20million, has been linked with Chelsea in recent weeks and is understood to have a get-out clause at a lower price.
Has The Penny Dropped With Balotelli?
Has Mario Balotelli suddenly realised the grass is a lot greener in Manchester? Balotelli's career prospects at the club are hanging by a thread.
Apparently he has taken a leaf from Carlos Tevez's book and has launched a bid to patch things up with manager Roberto Mancini, in a final attempt to salvage his career at the club.
The Italian striker backed down from his decision to challenge a £340,000 club fine at a Premier League tribunal, and the Italian's agent, Mino Raiola, said last night that the 22-year-old was determined to fix things with Mancini.
Balotelli's decision is reminiscint of last year's climb down by Tevez, who refused to play for City and left England for his native Argentina, before returning to help the Blues win the Premier League title.
It is understood that the change of heart, which came as the player's Italian lawyers prepared to present his case to the London tribunal.
The report that it was an 11th-hour intervention from Mancini, that stopped the Italian, are well wide of the mark.
The City boss would be happy to take the money from AC Milan in the January transfer window, because it has come down to a bizarre situation - either Balotelli goes - or Mancini.
With Mancini not even considering Balotelli for the side to play at Reading in two days.
And as a footnote - is interesting to point out - the PFA believed that Balotelli would have won the case against City.
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Manchester City Fixtures
Saturday December 22 15:00 Manchester City v Reading
Wednesday December 26 15:00 Sunderland v Manchester City
Saturday December 29 15:00 Norwich City v Manchester City
Tuesday January 1 2013 15:00 Manchester City v Stoke City
Sunday January 13 2013 16:00 Arsenal v Manchester City
Saturday January 19 2013 15:00 Manchester City v Fulham
Tuesday January 29 2013 19:45 QPR v Manchester City