Diego is a no-go for Schalke

Schalke manager Felix Magath has promised more new signings before the transfer deadline, although Diego will not be arriving in Gelsenkirchen.

The Royal Blues were believed to be interested in bringing the Brazilian playmaker back to the Bundesliga after a disappointing first season with Juventus, but Magath has ruled that out.

"We are not signing Diego," he said after his side's 2-1 win over third division side Aalen in the DFB-Pokal. "We don't have any chance of that."

However, Magath is still not happy with the team he has at his disposal and added that further transfers will be made over the next fortnight.

"We have our eyes on players who have more quality than those players we already have," he admitted.

Zvjezdan Misimovic of Wolfsburg is believed to be Magath's number one target and a transfer of the Bosnian would be made easier should the Wolves succeed in signing Diego from Juve.

Magath has been given up to 20 million euros to spend on new players to construct a squad which can challenge in the Bundesliga and Champions League this season.