The 29-year-old made 28 Serie A appearances last season, helping Genoa to a fine tenth place finish, but he had seemed almost certain to move on to fellow Italian club Reggina.
The Brazilian, who can also play at left midfield, has been training with the Amaranti for over a month, but the transfer could not be completed.
It was revealed yesterday that Spanish second division side Celta Vigo had come in with an offer for Fabiano, and although the player seemingly preferred to stay in Italy, he has had no choice but to accept their offer given all the confusion.
Fabiano moves to the Estadio Balaidos on a one year loan deal, and he will be hoping to help the Galicians to promotion back up to La Liga.
Celta were relegated down to the second division at the end of the 2006/07 season, and they had a miserable campaign last term also, only finishing in 16th place.
Fabiano joined Genoa from Palmeiras in 2006, but he now moves on to another European country.
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