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Kaka deal off, or is it?

From arabianbusinessnews.com:
Manchester City has withdrawn its world record $150 million bid to sign Brazilian superstar Kaka, according to a senior source close to the club’s owners.

The Abu Dhabi-owned club tabled the bid earlier this week, with Kaka, currently playing for AC Milan, saying he wanted to stay at the Italian club until he retired from the game.

It had been expected that further talks with his representatives would take place on Thursday.

But the well-placed source, speaking on the condition of anonymity, told Arabian Business: "The deal is off, and the offer is no longer on the table. The club is now pursuing another striker which it is very close to signing. Manchester City is about to unveil a new striker, but he is not called Kaka."
But from the MEN:
Hughes dismissed the reports from the UAE, saying: "I've seen these reports but you have to bear in mind that the people who are being given a platform to speak do not represent the owner (Sheikh Mansour) or (chairman) Khaldoon (Al Mubarak).

"In my opinion they should not be given a platform to say what they have because in this instance it is completely untrue because negotiations are still taking place."

He added: "It would be naive to think I have not been involved in discussions over this transfer. I have had meetings about it and have had an input.

"It is impossible to say whether it will go through or not but we will let everyone know when there is something to say."

"It has been well documented that we have expressed an interest in signing him. Garry Cook and a number of other people went to Milan earlier in the week to get an understanding of the situation. To add any more at this stage would be wrong."
No doubt more on this will unfold over the course of the day.

UPDATE 19:36 - It appears - according to Sky Sports News, via Milan's own TV station - that Milan are 'considering' an offer from ourselves, believed to be in the region of £107 million.

From reuters:

"There's an offer for Kaka from Manchester City and it is being considered by Milan," channel director Mauro Suma said.

"Considered does not mean decided or accepted. We are not faced with a decision made or a done deed. There are still hours and days ahead."

A Milan spokesman said Suma's comments were not an official statement by the Serie A club.

All now being widely reported of course.

UPDATE 20:44 - The BBC are reporting we have been given permission to discuss a move with Kaka and his representatives, quoting directly from his agent Diogo Kotscho.