Watford have pulled out of a deal to sign Arsenal defender Kieran Gibbs, Sky Sports News understands.
The Hornets could not agree personal terms with the left-back after agreeing a deal with the Gunners last week.
Gibbs, who is in the final year of his contract at the Emirates and has been told he can leave, was believed to have been keen to play under Marco Silva at Vicarage Road.
West Brom pulled out of talks to sign Gibbs last month after having a £10m bid rejected, while Newcastle have also been credited with an interest in the 27-year-old.
The left-back lost his first-team place to Nacho Monreal last season when he made just eight Premier League starts and, having missed the pre-season tour to the Far East, has yet to feature this season.
Gibbs, who has 10 England caps, is a product of Arsenal's academy. He made his debut in 2007 after spending a short time on loan at Norwich City.