A statement on the Bayern Munich website says that Lucio has left the club after five trophy laden years.
The Brazilian was targetted to join Mark Hughes and the City revolution but the manager will now have to look elsewhere to bolster the defence, particularly since John Terry jetted off with Chelsea for their pre-season tour of America, fuelling speculation that the England skipper will remain at Stamford Bridge.
That leaves Joleon Lescott as the next in line, with the centre back rumoured to be ready to request a transfer from the Toffee's in order to join the blues. Arsenal's Kolo Toure still remains an option but Hughes' interest seems to have cooled in recent weeks.