I have been in a similar situation in the past. My advice:RUN away, run !!!!
Psychics were also telling me that we would become a couple and in two whole years we were still friends with benefits. It's horrible! And then he met someone and told me we couldn't continue. I suffered a lot!
Don't believe psychics, believe HIS words. He said he doesn't want you as a girlfriend, he has been very clear and won't change his mind.
Plus, he is with someone now. So he absolutely is a bastard. Sorry but do you like being mistress? Would you like your future boyfriend to be friend with benefit with his ex without you knowing anything?
Come on don't be soft, be a real woman, and have some pride! Next!!