Everton have pulled out of an £8.6m deal for Leroy Fer after a medical revealed a problem with the FC Twente midfielder's knee. The Toffees wanted to restructure the deal and gave Twente a deadline of Wednesday evening to agree.
However the Dutch club insisted on keeping to the original terms.
"We always have to consider what is in the best interests of Everton and its supporters," a Toffees spokesman said.
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