Sao Paulo have confirmed their move for Villarreal striker Nilmar is off.

The 27-year-old had been in discussions over a potential return to his native Brazil but the club has been forced to withdraw from the talks as they are unwilling to break their wage policy.

"Unfortunately, there was no agreement with the player's agent to ensure the negotiation's success, which for now has led us to pull out of the deal," Sao Paulo official Adalberto Baptista told Globoesporte.

"The agent and the player have every right to look for the best deal possible when signing a new contract, but Sao Paulo could not break their salary policy that has been in place for years.

"This has brought the club a financial stability that has been invaluable in times like these, when so much is heard of delays and non-payment of salaries."