Manchester City striker Roque Santa Cruz would be a Lazio player if not for coach Edy Reja.
Santa Cruz, 29, and City were then victims of a Lazio smear campaign.
A Lazio source told the Mail on Sunday: "(Fabio) Capello's friend Edy Reja got cold feet and decided he had too many strikers already with Mauro Zarate, Sergio Floccari, Pasquale Foggia and Tommaso Rocchi all available.
"Lazio didn't want to anger their own fans so they deliberately starting leaking a story that City and Santa Cruz were asking too much money from their point of view.
"But the real reason the move broke down wasn't the money, it was all about Edy Reja changing his mind."