Marseille have told West Ham they will not pay more than £25m to sign Dimitri Payet, Sky Sports News HQ understands.
Sky sources understand a split has emerged between Marseille officials, with some wanting to abandon their pursuit of the 29-year-old and some still keen to continue negotiations with West Ham.
A source involved in the negotiations has told SSNHQ that it is looking more likely the French club's pursuit of Payet will go to Deadline Day when they will try and take the France international on loan.
Payet has been training with West Ham's U23s since informing manager Slaven Bilic of his desire to leave the club before the close of the January transfer window.
The Hammers have rejected three bids for Payet from his former club, the last of which was worth £22.5m, and value him at £30m.
Payet, who joined West Ham from Marseille for £10.75m in the summer of 2015, wants to return to the south of France because of family reasons.
He has scored 15 goals in 60 appearances for West Ham and was rewarded with a new five-and-a-half year deal last February.
West Ham have won back-to-back Premier League matches without Payet, which has lifted them into the top half of the table.