West Ham have ended their interest in James Ward-Prowse after Southampton pushed for a £30million fee.
The decision followed more woe for Hammers boss David Moyes after a move for Manchester City's Carlos Borges was hijacked by Ajax.
Tension is rising behind the scenes at West Ham, with the role of technical director Tim Steidten under scrutiny.
They are the only Premier League side yet to sign a player, despite the £105m sale of Declan Rice to Arsenal.
The Londoners had two bids rejected for Ward-Prowse, the last at £20m with £5m in add-ons, and will walk away for now.