Crystal Palace called off their move for West Brom full-back Nathan Ferguson after a knee issue was picked up in his medical.
The south London club were taking a closer look before making any decision on the transfer after a deal was agreed for a fee that could eventually rise to £10m.
Palace decided against a move after a fee restructure was ruled out.
It is another transfer blow for Palace after Jarrod Bowen chose to join West Ham.
Ferguson enjoyed a successful breakthrough season in the Championship with West Brom, scoring once in 21 appearances.
He has been at West Brom since he was eight years old, and represented England at under-20 level on four occasions.
Palace are yet to replace Aaron Wan-Bissaka after his move to Manchester United last summer.