Everton midfielder Ross Barkley changed his mind about moving to Chelsea despite undergoing a medical with the Premier League champions, according to Toffees' majority shareholder Farhad Moshiri.
Press Association Sport understands Everton had accepted a £35million offer for the England international and were caught out by Barkley's decision to opt against the move.
The 23-year-old's snub is the latest blow in a string of transfer window disappointments for the Blues - who have missed out on a number of summer targets.
Their former striker Romelu Lukaku was heavily linked with a return to Stamford Bridge but instead chose to join rivals Manchester United.