Matteo signed a three-year deal at Blackburn last night after joining on a free transfer.
He was owed around £500k by Leeds but decided to waive it.
He was so reluctant to leave he even offered to take a cut on his £1.5m-a-year deal.
Meanwhile, left-back Ian Harte is in talks with Spanish Primera Liga club Levante.
Harte, 26, can quit Elland Road on a Bosman free. He earns £25k-a-week as Leeds still need to cut their wage bill.
Also, Michael Duberry’s move to Wolves is now back on.