PSV Eindhoven technical director Ernest Stewart says Ricardo Pepi’s move to Fulham is off.
A fee of £32m had been agreed last week between the two clubs, with Pepi taking a medical in London on Thursday.
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However Stewart says the deal has now collapsed.
Speaking to ESPN Netherlands, Stewart said: “We were, of course, already in talks with Fulham during the winter break when they came just before the transfer window closed.
“We couldn’t bring in a replacement anymore, so at that moment, the transfer couldn’t go through. But a week later we got back in talks and the process got underway.
“That responsibility for the player was a very important detail that always played a role. And while we did get a bit closer to each other in that regard, ultimately, we remained too far apart.
“Ricardo really wanted this. It is an unpleasant situation, especially for Ricardo. We are, of course, happy that we are retaining a good striker.”
Fulham are expected to try again for Pepi over the summer.