Everton have confirmed they are no longer in dialogue with FC Twente over the proposed transfer of Leroy Fer.
The Blues and the Dutch side had previously agreed a deal to bring the 23-year old midfielder to Goodison Park.
However, following extensive discussions with both the club and the player in the past 24 hours it became apparent that the transfer would not be going ahead.
A Club spokesman said: "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.
He added: "David Moyes and his staff are continuing to look at options to bolster our squad before the transfer window closes."