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The proposed blockbuster deal to take Inter Milan pair Vladimir Jugovic and Christian Vieri to Lazio with Marcelo Salas and Roberto Baronio moving in the opposite direction looks to be dead after Baronio signed a new deal with the Rome club.

Midfielder Baronio, 23, signed a five-year contract worth £1 million a year and following a conversation between Inter manager Marcello Lippi and Vieri, who is in the US on holiday, it appears Vieri will stay in Milan.

There will be final meeting between the owners of Lazio and Inter on Wednesday – and if they cannot agree to a swap Lazio look set to move for Parma's unsettled Argentinean striker Hernan Crespo.

On Monday, Lazio officials met the 25-year-old Argentinean’s agent Gustavo Mascardi, and it is understood Lazio will offer Parma Salas and Matias Almeyda in exchange.

Since the season ended with Lazio’s thrilling double success, Vieri has given mixed messages as to whether he wants to leave or stay at the Milan club.

Vieri has suggested he would welcome a move, but this was before his fiancee, Elisabeta Canalis, signed a new year-long contract presenting Striscia la Notizia, one of the most popular TV shows in Italy - and based in Milan.

The Australian-born striker cost Inter a world-record £32m from Lazio a year ago – but the proposed Lazio switch would have broken all records.

Vladimir Jugovic is a player Sven Goran Eriksson greatly admires, having worked with him at Sampdoria and for a season at Lazio. The experienced Yugoslav earns £1.5 million a year, and Moratti is keen to off-load him.

In return, Inter were keen on the highly-rated Baronio, who was on loan to Reggina last season. The talented youngster starred for the Italy Under-21 side that won the European Championships in Slovakia in May.

Observers in Italy have seen transfer moves involving Vieri scuppered at the last minute before. But the deal to take him to Lazio looked all the more plausible after Inter technical director Gabriele Oriali's ruled out reports that talks were under way with Juventus over a Vieri transfer.

Baronio, for his part, confessed to being in the dark over the negotiations.

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