(CNN) -- English double winners Chelsea have failed in a big-money move to sign Brazilian teenage sensation Neymar -- after the 18-year-old decided to remain with his home town club Santos.
The London giants were reported to have offered in the region of 35 million euros for the midfielder, who scored for his country against the United States in a friendly last week.
"I feel very happy with Santos, that's why I'm staying," Neymar told reporters on Thursday.
Brazilian media have claimed that the player's annual salary of $1 million per year is to be increased with merchandising deals following his decision to stay.
In other transfer news, former Arsenal captain Williams Gallas is on the brink of a shock switch to rivals Tottenham.
Gallas, who failed to agree a new contract with the Gunners at the end of last season, would become the first player to move across the north London divide since Sol Campbell's controversial switch from Tottenham to Arsenal in 20002.
The 33-year-old is expected to sign a one-year contract and will be eligible to play in the Chamions League should Tottenham overcome Swiss side Young Boys in the second leg of their qualifying round tie.
There has also been a surprise transfer in the Championship, the second tier of English football, with Crystal Palace luring former Dutch international Edgar Davids out of retirement.
The 37-year-old former Juventus and Ajax star retired two years ago, but has been persuaded to return after signing a one-year contract with the London club.
Meanwhile, Italian giants Juventus have signed Serbian winger Milos Krasic from CSKA Moscow for a fee of 15 million euros.
The 25-year-old will be presented to the Italian media on Saturday after agreeing a five-year contract with the Turin club.
And Manchester United have confirmed that defender Nemanja Vidic has now signed a new four-year contract with the club.
United announced last month that the 28-year-old had agreed to extend his stay at Old Trafford and the Serbian international center-half has officially sealed the deal.