The dynamic midfielder has caught the eye of several teams over the past 18 months with his superb box-to-box displays in the heart of the Portuguese champions midfield - and Liverpool were also said to be keen.
In the summer Everton agreed a fee with the club but failed in a Work Permit application as Fernando had never played for Brazil.
But with him receiving Portuguese citizenship last month that potential barrier was broken down - and United were said to be keen.
However that interest seemed extinguished with yesterday’s news of Milan’s apparent agreement with the player.
But there has been a twist today from Italy.
Tutto Mercato Web have reported that no such deal exists - in fact quite contrary - they believe Fernando will actually sign a new deal with Porto this week.
His contract at the club expires at the end of the season - but the report claims that despite potentially wanting to leave in the summer he and his agent have so much respect for their current employers they are not willing to leave without Porto being sufficiently compensated.
It is believed any deal will include a release clause which would see him depart in July.
The situation however is complicated by his recent Portuguese citizenship. He is widely touted to be in line for an international call-up with Portugal for the game against Cameroon in March - and there are question marks over whether he would be selected to play for his adopted nation should he move abroad.
Regardless this remains a fluid story, the details of which could change at any given moment.
But so far nothing is confirmed - and the rumour mill will churn on.
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