Everton have confirmed they have cancelled the deal to sign Netherlands international Leroy Fer from Twente.
The Toffees had agreed an £8.5m deal with with Dutch side, earlier in the week, but issues emerged with the transfer after the player underwent a medical in England.
Following further talks between the two sides, Everton decided to call off the transfer, according to Everton chief executive Robert Elstone.
"We were very excited about the prospect of a young international Dutch player coming to Goodison, and the combination of a lot of hard work we thought we had the player," he told Sky Sports News.
"But the transfer did not go smoothly and there were some issues and as our fans would expect, we have to put the club first, and as our track record proves, we thought long and hard about it but it did not work out."
"We have to be very careful about how we spend out money."
Elstone insisted, on the other hand, that the club will still try and bring new signings before the winter transfer window closes in January.
"We are still looking and there are other options for us and I refer back to our track record, and as any club we do have other options and it will not be for the lack of trying," he concluded.