It has been confirmed that Manchester United full-back Gabriel Heinze has lost his appeal at the FA and will not join Liverpool this season.
The news marks the end of Heinze’s hopes of joining Liverpool this summer and poses the Argentina several quandaries.
The situation began in July when United told Heinze that he was free to leave the club to anyone matching the £6.8million valuation.
The player had become disillusioned with life at Old Trafford after being usurped as starting left-back by Patrice Evra and was desperate to find first-team football.
Liverpool quickly emerged as the front-runners in the race to sign Heinze who had also attracted muted interest from Juventus, however United boss Alex Ferguson insisted that Heinze would not join Liverpool or any of the club’s close rivals.
The turnaround infuriated Heinze who had learnt that Liverpool had met the valuation, quickly prompting the 29-year-old to seek legal action to force through a move to Anfield.
Having liaised with Liverpool lawyers, it was decided that the case be taken to the Football Association who would govern whether United were in their rights to refuse a transfer.
The decision by the arbitration panel confirms that Heinze will not be transferred to Liverpool.
Gabriel Heinze has lost his bid to force Manchester United to sell him to Liverpool.
The Argentina defender had gone to a Premier League panel claiming United had written a letter allowing him to leave if another club offered a fee of £6.8million.
The panel today dismissed Heinze's case and backed United, who maintained they made it clear to the 29-year-old both orally and in writing that he would not be permitted to join one of their title rivals.
It now appears that if Heinze is intent on leaving the club he will have to move abroad.
The Premier League said in a statement: "The hearing concluded that nature and intention of the disputed 13 June 2007 letter, especially when taken in context of verbal discussions and Manchester United FC's transfer policy, was unambiguous in that it envisages only an international transfer.
"Furthermore the hearing finds the letter constitutes an 'agreement to agree', and did not create an obligation or binding agreement for the club to transfer the player to any particular club.
"In other words the letter is evidence of an intention to negotiate, both between the parties and with potential buying clubs, and not evidence of any intention to create legal relations."
Heinze does have the right to appeal to the Premier League appeals committee, which is made up of an independent, legally-qualified chairman, a member of the Premier League panel and a PFA appointee.
The decision has delighted United, who were represented by both manager Sir Alex Ferguson and chief executive David Gill at the hearing in London.