Sao Paulo vice-president Joao Lopes has claimed that midfielder Henrique could still join Queens Park Rangers despite news of the deal falling through.
Reports stated earlier this week that the Premier League side had failed to land the 20-year-old after he was refused a work permit.
Despite suggestions that the deal was dead in the water, the Brazilian club have claimed that the breakdown in negotiations was due to a dispute over the option of a loan or permanent deal.
"It was said that he was denied [a transfer] but this is not true, the FA would only authorise the deal if it was permanent," Sao Paulo vice-president Joao Lopes told Globoesporte.
"The FA did not agree with the deal that was going on, so we will now meet again [wtih QPR] and try to come to an agreement."
Henrique is believed to be valued at £6m.
