It had been widely reported that Wolves midfielder Gomes, 25, was on the verge of joining Atletico following his side’s relegation.
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Now, according to Marca, Diego Simeone’s side have pulled out of the deal after their relationship with super-agent Mendes soured.
It’s understood that Bernardo Silva’s move to Real Madrid is the reason with Mendes abruptly ending negotiations with Atletico so he could entertain an offer from their bitter rivals.
Simeone’s priority remains a central midfielder, however, and Atletico have now agreed personal terms with Sporting’s Hjulmand.
The Portuguese side value the 27-year-old at €40 million and negotiations between the two clubs are ongoing.