Milan looked to have clinched the capture of the Honduras international striker but conceded defeat on Saturday as news that 27-year-old Suazo had sealed a deal with Inter broke.

A statement posted on Milan's website, www.acmilan.com, read: "AC Milan had previously reached an agreement with Cagliari for the transfer of player David Suazo.

"Milan learned after the fact that the player had already signed a contract with FC Internazionale and they are now withdrawing from negotiations.

"Milan want to emphasise that they have acted legally in conforming with the national and international sporting rules and regulations."

Cagliari president Massimo Cellino had earlier revealed the deal that will be reportedly worth 14million euros to the Sardinian club.

"Suazo called me at half past nine (on Friday evening) and told me he wanted to go to Inter," Cellino told www.gazzetta.it.

"In tears, he told me that he was choosing Inter because they had followed him with great attention and (Inter coach Roberto) Mancini had spoken to him several times with much enthusiasm.

"Even if he appreciated Milan's interest he was worried that they might be just trying to put a spanner in the works for Inter."