It had appeared Milan had struck terms with Corinthians for Andre, with the youngster due in Italy over the summer.
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A fee of €15m plus €2m in bonuses had been settled, with personal terms also struck.
However, Corinthians have now pulled back after a backlash from fans and coach Dorival Junior.
Indeed, TMW says Dorival has threatened to resign should Andre be sold midway through the Brasileiro season.
Corinthians president Osmar Stabile is now rethinking the deal, particularly with the club's elections due in a year's time.
Watching on are Milan, which are now considering legal action believing they had already struck an agreement for Andre's transfer.