Real Madrid had reached an agreement to sign Fluminense’s Pedro Guilherme before the forward suffered a serious knee injury.
Marca reported a €30m agreement had been reached between the club’s before the 21-year-old suffered a ruptured anterior cruciate ligament which ruled him out for seven months.
Guilherme has netted 19 times in 40 matches for the Brazilian club last season and had also been linked to Sevilla, Milan and Roma.
“At that time we had reached an agreement with Madrid, we just needed to sign, we had already talked with the family and with Fluminense,” said Pedro's representative, Marcio Giugni on the Esporte Espetacular program of Rede Globo.
The forward’s deal runs through until 2021 and contains a €50m release clause, with a future move to European football still likely.
Madrid have recently invested heavily in young Brazilians with deals for Vinicius Junior and Rodrygo Goes already secured in the past year.