Sao Paulo have hit out at Napoli after a deal for Edu Vargas collapsed yesterday.

Vargas is set to join Gremio on-loan.

"Napoli didn't behave very well," Sao Paulo chief Juvenal Juvencio told Lancenet. "The Italian club have tried to construct an auction and we have reached our limit.

"First they wanted €1.5m for an 18-month loan and we accepted. Then they wanted the same amount for a 12-month deal.

"Then they came back to us and asked to insert a clause which would allow them to recall him at any moment.

"I said I would only accept that if they then gave us back our money should they opt to recall him. That's when the deal collapsed."