San Lorenzo have announced they are no longer in the running to sign Newcastle captain Fabricio Coloccini this month.
Coloccini had been heavily linked with a move back to Argentina after requesting a transfer for personal reasons, but now looks poised to remain at St James Park.
San Lorenzo posted on their club Twitter page: "Finally, after long negotiations, we announced that Fabricio Coloccini not join the squad.
"It was not possible to release the Newcastle player ... and therefore the club will look for another alternative to strengthen the defence."
Newcastle manager Alan Pardew had previously maintained hope club captain Coloccini would stay, and the news of San Lorenzo ending their interest will come as a boost for the English Premier League outfit as they look to end their slump in form.
Coloccini, 30, joined Newcastle in August 2008 from Spanish side Deportivo La Coruna and has established himself as one of the club's most reliable players.