The Austria international has attracted enquiries from Barca this year, says El Mundo Deportivo. But they've since pulled back from their pursuit after being quoted a €100m figure.
Barca believe Bayern are being unrealistic over Alaba's valuation and are now ending their interest.
Instead, Blaugrana management are ready to stick with Lucas Digne, despite his form struggles this season, as cover for Jordi Alba. There is also big hope inside La Masia for Barca B left-back Juan Miranda.