The News says Hajduk Split and Pompey are reported to have been unable to agree over agent fees and the method of payment for a fee believed to be £5.5m, leaving Kalinic in transfer limbo.
The 21-year-old last night flew out of the country to begin negotiations with Portuguese giants Porto.
According to sources in Croatia, the deal broke down over money, with payments to agent Tomislav Erceg and other people in the striker's camp causing problems.
Hajduk Split were set to receive 75 per cent of the fee for Kalinic, with 25 per cent going to Kalinic and his advisors.
The method of payment was also an issue, Pompey wanting the payment staggered but Hajduk demanding the bulk of the cash up front.