Barcelona and Celta Vigo have proved unable to agree terms on the signing of Nolito and the move has reportedly broken down.
Mundo Deportivo are among the publications to say that with the clubs at an impasse, negotiations have wrapped up and the Spain international will stay at Balaidos.
Celta refused to budge from insisting Nolito’s €18m release clause be met but Barca are unable to do so due to club regulations on financial outlay.
Paying €18m for Nolito now would breach Barca’s by-laws on debt and there was no accord on a loan deal with a permanent transfer in the summer.
Mundo Deportivo add that Luis Enrique has been told of the breakdown and understands the reason for it.
Barca won’t move on to another target as their second choice, Villarreal’s Denis Suarez, is part of a chain of transfers that isn’t going ahead.
Villarreal will only sell Suarez to Barca if they can get Denis Cheryshev from Real Madrid as a replacement, but that move is considered unlikely.