Hibernians have terminated the contract of Diego Balbinot.

The Brazilian defender enjoyed a very positive start to his Hibs career, forging a strong partnership with fellow compatriot Rodolfo Soares, but injuries have severely restricted his first-team appearances in the last three months.

The Paolites were hoping that Balbinot would recover from his latest setback ahead of their crunch match against Premier League leaders Valletta on Saturday with coach Mark Miller suggesting last week that the 27-year-old, who is plagued by a thigh injury, may be available for the Trofeo Porto-masolive.com last Friday.

However, Balbinot’s absence from the squad raised serious question marks about his future with the club. Sources yesterday told The Times that Hibs have decided to activate a clause in Balbinot’s contract allowing them to release the player with no further obligations.

Hibs are now expected to step up their efforts to bring in a replacement as Balbinot’s departure has further reduced their already limited defensive options.

Brazilian trialist Alex Pedrosa, a forward, appeared for Hibs in last Friday’s tournament but he’s unlikely to be offered a deal as the Paolites are set to switch their attention to signing a centre-half.

Meanwhile, it has emerged that an Italian businessman is showing a strong interest in linking up with Valletta.

Talks between the entre-preneuer and high-ranking officials of Valletta, spearheaded by president Victor Sciriha, are at a very advanced stage.

The potential investor and his representatives are expected to be here later this week to watch Valletta’s much-anticipated clash with Hibs.

Elsewhere, Balzan Youths are looking to recruit a striker as a replacement for departed New Zealand forward Kris Bright who is poised to join Norwegian side Bryne FK.

The Youths were on the verge of signing highly-rated Albanian striker Xhevahir Sukaj, who is currently on the books of Vllaznia Shkoder, but the two clubs have failed to come to an agreement over the terms of the player’s release.

Balzan have also expressed an interest in Valletta’s Nigerian forward Alfred Effiong.

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