MANCHESTER CITY have wrecked AC Milans bid to sign Ronaldinho by offering him £30MILLION in wages.

The Italians admitted defeat in the chase for the Barcelona star after the £180,000-a-week proposal.

AC vice president Adriano Galliani said: We simply cannot compete with certain figures anymore.

"I cannot ignore the fact Italian football is now in fourth position in Europe behind England, Spain and Germany.

Manchester City have offered Ronaldinho £9.5m a year.

We can only compete with that if Barcelona give him away for free.

On top of the massive three-year wage deal for Ronaldinho, City owner Thaksin Shinawatra will also have to stump up £20m to buy the Brazilian playmaker from Barca.

But the former Thai prime minister hopes much of his outlay will be recouped in commercial deals.

In a year at the Eastlands helm, Shinawatra has spent £50m on players and sacked Sven Goran Eriksson despite him getting the club into Europe.

New boss Mark Hughes has been told there is a lot of cash to spend this summer.

Citys offer for Ronaldinho dwarfs the Premier Leagues current biggest pay deals.

England centre-backs Rio Ferdinand at Manchester United and Chelseas John Terry both pocket £130,000 a week.