Cottagers boss Roy Hodgson is keen to bring the Norwegian forward to England and the clubs met at Schiphol Airport on Friday evening, but a deal was not struck and Groningen have indicated a deal will not happen.
"Eventually, Fulham went further to £1 million, but we find that insufficient.
"For that amount we cannot find a good substitute at such short notice and we cannot justify the sale to our supporters.
"Fulham have indicated that the negotiations are now closed."
The news has not sat well with Nevland, who stated: "The offer Fulham have made is high enough."
"I will not react in the same way as Bruno Silva, even if that seems the best way to get a move."