Celtic target Fabricio Bruno has been released from his Cruzeiro contract as the 23-year-old becomes a free agent.
The Brazilian defender has been targeted by the Hoops, with his club revealing that talks were underway with the Premiership leaders.
The centre-back took legal action over unpaid wages to try and walk away from his contract, and a bid was later accepted from Red Bull Bragantino.
That transfer fell through and Cruzeiro faced a $4million lawsuit but Globo Esporte reports that he has now been freed from his contract.
Cruzeiro were given 500,000 Brazilian dollars to terminate his contract, in return for Bruno withdrawing his legal action against the club.
It's also reported that they will retain 25 per cent of his registration, meaning any club signing him would have to buy them out or give the Brazilian side a percentage of any future transfer fee.
Last month an official statement from Cruzeiro confirmed Celtic 's interest.
It read: "Cruzeiro Esporte Clube explains that it has not received any official proposal from Celtic for defender Fabricio Bruno.
"The player's agent, Fabio Mello, was at Toca da Raposa 2 this week in the company of Fabricio Bruno and met with the club's board, represented by the directors Marcelo Djian, Benecy Queiroz, Valdir Barbosa and vice-president Marcio Rodrigues.
"Fabio Mello reported that he was meeting with Scottish club officials in London, England, and was authorized to make a loan proposal from January to June 2020, with Celtic paying 300,000 Euros for the loan and 2.5million Euros more if Fabricio Bruno was approved during this period.
"Cruzeiro did not accept and countered 1million euros for the loan and 4 million euros if the player was approved.
"Sporting director Marcelo Djian even said: 'if Fabricio Bruno does not stay with Celtic he'd return undervalued and Cruzerio would receive only 500,000 Euros - a very small amount'.
"The agent of the player said that the amount requested by Cruzeiro was a little high, but he would work to increase the values of the loan and permanent transfer."
The Hoops will now be able to negotiate directly with Bruno if they wish to add him to Neil Lennon 's squad.
