Sunderland have cancelled the transfer of Argentine full-back Gino Peruzzi due to a failed medical.

Manager Paulo Di Canio was chasing the 21-year-old defender, but pulled the plug on the deal after a ligament injury was highlighted during his medical.

"There is no chance for Gino Peruzzi to join us," Di Canio told reporters.

"We have to make sure about some situations but my club is not a club that can sign at the moment a player who is injured, even though it's not a crucial injury.

"We are not Manchester City, who can think about buying a talented player with an injury and wait for him."

Sunderland have been busy in the transfer window and have signed nine players, including Italian international Emanuele Giaccherini from Juventus.