Kylian Mbappe’s proposed move to Real Madrid this month is off after Paris Saint-Germain failed to respond to the Spanish side’s final offer.
Real were willing to pay £189m (€220m) to sign Mbappe, but walked away after PSG stalled on the deal.
Real will now focus on signing Mbappe to a pre-contract agreement in January in order for him to move to the Bernabeu on a free transfer next season.
The 22-year-old’s PSG contract expires at the end of the current campaign and he has made it clear to the club he has no intention of extending the deal.
Mbappe’s dream is to play for Real, who signed his France international team-mate Eduardo Camavinga from Rennes on a six-year deal for up to €40m (£34.4m) on Tuesday.
PSG sporting director Leonardo said last week Mbappe wanted to leave, but they would not sell him in the final week of the window and they would not sell him for less than his market value.
He joined PSG from Ligue 1 rivals Monaco in 2017 and has gone on to win three French titles and three French cups with the side.
Mbappe was also part of the France squad that lifted the World Cup in Russia in 2018.
Follow Deadline Day with Sky Sports
Time is running out for clubs to do business – the summer transfer window closes at 11pm in England and midnight in Scotland on Tuesday, August 31 and you can follow all the Deadline Day drama with Sky Sports.
Follow all the latest transfer news and rumours in our dedicated Transfer Centre blog on the Sky Sports website and app, check out the latest done deals and watch the best analysis and reaction on Sky Sports News.