Manchester City and Roque Santa Cruz were victims of a Lazio smear campaign, according to the Daily Mail.

The Paraguayan striker was set to join the Italian outfit before Lazio coach, and friend of Fabio Capello, Edy Reja suddenly 'got cold feet'.

The Daily Mail claims that a Lazio source said: "Capello's friend Edy Reja got cold feet and decided he had too many strikers already with Mauro Zarate, Sergio Floccari, Pasquale Foggia and Tommaso Rocchi all available.

"Lazio didn't want to anger their own fans so they deliberately starting leaking a story that City and Santa Cruz were asking too much money from their point of view.

"But the real reason the move broke down wasn't the money, it was all about Edy Reja changing his mind."

Despite the claims, City were still able to name Santa Cruz as part of their 25-man squad for the upcoming Premier League season.