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The Wolfsburg playmaker has become Harry Redknapp’s ninth signing of the January transfer window and is the most exciting arrival since Alexandre Gaydamak’s recent investment in the club.
Redknapp said of the 24-year-old on the club’s website, pompeyfc.co.uk: "The boy is a really influential playmaker and you can’t have too many of those.
"This is a massive signing at the club for sure."
Wolfsburg paid River a club record £6.15million for the 24-year-old in 2003 but he ruled out a return to Buenos Aires as his wife is seven months pregnant and currently unable to travel.
Borussia Monchengladbach held talks with the player at the weekend but they were unable to match Wolfsburg’s valuation, reported to be in the region of £4.4million.
D’Alessandro has fallen out of favour at Wolfsburg after coach Klaus Augenthaler dropped him for displaying a bad attitude to training.
One player leaving Fratton Park could be Zvonimir Vukic, who claims he has left Portsmouth for Partizan Belgrade on a six-month loan deal.
Manchester City could face a frantic fight to keep hold of Joey Barton after the midfielder requested a move on the penultimate day of the transfer window.
The all-action midfielder sensationally stated his intention to quit City last night, a move which was instantly rejected by Blues manager Stuart Pearce.
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But Pearce will attempt to smooth relations with the player, who received the full support of the club and supporters during his well-publicised personal problems during the summer.
"I wouldn’t have done what Joey did after the club stood by him in the summer," said Pearce.
"I am disappointed, but more for the fans and chairman.
"But we hope to secure him on a long-term contract. I will talk to him today and I think something will be sorted out."
New City striker Georgios Samaras is determined to put a difficult month behind him and start scoring goals for his new club.
The Greece Under-21 international went on strike last week after losing a court case challenging Dutch side Heerenveen’s refusal to allow him to leave.
However, after City increased their offer to £6million Samaras completed a move to England signed a three-and-a-half-year contract yesterday.
"It has been a tough month for me but I was pleased that City were interested in me and now I’m really happy to be here," said the 20-year-old.
City have also secured the services of Southampton central defender Matthew Mills on a three-and-a-half-year deal.
The 19-year-old, coached by Blues’ reserve team manager Steve Wigley when he was in charge of Southampton’s youth academy, is an England Under-21 international.
AC Milan have confirmed they have rebuffed renewed interest from Manchester United in Switzerland midfielder Johann Vogel.
Rossoneri sporting director Ariedo Braida admitted United inquired about the 28-year-old but added they were then told the player will be staying at the San Siro.
"We want him and we need him and therefore we are not willing to let him go.
"It’s true that Manchester United showed an interest. But no offer was made, because we said from the beginning that we wanted to keep the player."
Fulham have allowed defender Zesh Rehman to join Norwich on loan for the rest of the season.
The 22-year-old Pakistan international has found first-team opportunities limited at Craven Cottage and will aid the Canaries’ Coca-Cola Championship promotion push - including the play-offs should Nigel Worthington’s side reach them.
Worthington hopes to complete the loan signing of Charlton forward Jonatan Johansson before tonight’s clash with leaders Reading.
Wigan’s Australia international midfielder Josip Skoko has rejected a loan move to Stoke, despite a lack of first-team opportunities at the JJB Stadium.
Skoko has struggled to force his way into the side since a summer move from Turkish club Genclerbirligi.
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