Everton have abandoned plans to sign Leroy Fer after problems with the Dutch midfielder's medical, the club announced on Wednesday.
The English Premier League side had agreed a fee with Fer's club, FC Twente, but the 23-year-old's proposed move started to unravel when he arrived for his medical in Liverpool.
"We were very excited at the prospect of Leroy coming to Goodison but unfortunately the transfer did not go smoothly, there were some issues," Everton chief executive Robert Elstone told Sky Sports.
"I think our fans will understand that we had to put the club and the club's finances first.
"There are other options for us and we will work hard on them. It will not be for want of trying," he added, just a day before the transfer window closes.
Fer, nicknamed 'The Bouncer' because of his forceful on-field style, would have been the Toffees' first signing of the January window if the deal had gone through.
However, he has missed nearly two months of the Eredivisie season after suffering a knee injury while on Netherlands duty in September and concerns over his fitness led Everton to pull the plug on his proposed move to Goodison Park.
Fer has made two full international appearances and has played for the Netherlands alongside Johnny Heitinga, who scored Everton's winner in their FA Cup fourth-round victory over Bolton on Saturday.
After the match, Everton manager David Moyes indicated he wanted to sign either a midfielder or a striker before the end of the January window.