The Red Devils have been keen to sign the 19-year old attacking midfielder but a recent offer of £27million was rejected by the Brazilian club who have now decided to stop negotiations.
"There are no negotiations going on. Everybody knows that we got an offer for him, and rejected it. It's also known that Lucas doesn't want to leave. The only person keeping the expectations alive is his agent," Baptista told ESPN Brasil.
"The decision is final. There will always be great team going after great players. This mismatch between the European and Brazilian transfer window makes it hard for national clubs, and we have to deal with that."