Everton have pulled out of a deal to sign Leroy Fer from FC Twente.
The Merseyside club had a agreed a £8.6million fee with the Dutch club for the midfielder but attempted to restructure the terms after a knee problem arose during his medical.
However, Twente have refused to budge and Everton have now confirmed the Holland international will not be heading to Goodison Park before Thursday's transfer deadline.
"We are extremely disappointed not to be in a position to complete the signing but we always have to consider what is in the best interests of Everton and its supporters. On this occasion it was not the right thing for the football club to do," said a spokesman for the Toffees.
"David Moyes and his staff are continuing to look at options to bolster our squad before the transfer window closes."