Milan's bid to sign left-back Antonee Robinson from Wigan Athletic collapsed on Friday, the Championship club confirmed.
The Serie A giants allowed Ricardo Rodriguez to depart for PSV earlier in the week and looked to have identified a replacement in the form of United States international Robinson.
The 22-year-old, who joined Wigan from Everton last July following a successful loan spell, had appeared set to provide cover for Theo Hernandez.
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But Milan have instead recalled Diego Laxalt from a loan with Torino.
Wigan released a statement on Friday confirming Robinson was heading back to the DW Stadium after a hitch in the transfer.