AC Milan have reportedly ended their interest in Gremio forward Everton Soares.

Having broken into the Brazil squad, Soares has emerged as a potential transfer target for a wide number of European clubs.

However, the €120m (£103.78m) release clause in the 23-year-old's contract is proving to be a stumbling block.

Given their issues with FFP, Milan have opted to accept defeat in their pursuit of the winger, according to Calciomercato.

Arsenal have previously been linked with a bid for Soares, who has a contract with Gremio until the end of the 2022-23 campaign.