The Bologna midfielder was in negotiations with the Saints regarding a transfer but talks have fallen over according to his representative Oscar Betancourt.
"The negotiations with Southampton have ended," Ramirez's agent Oscar Betancourt told calciomercatoweb.it.
"Bologna didn't want to close the deal without the bank guarantees. I have spoken today [Wednesday] with the English club's chairman and they are looking at another target.
"The player was very happy with the offer received, but now he will probably remain at Bologna."
Betancourt also played down links with Tottenham and Liverpool, suggesting that neither club was ever a serious possibility.
"Tottenham is an option to be rejected at this time because they are a long way short of Bologna's demands," Betancourt added.
"Liverpool? They have never presented a concrete offer."