Fulham made an attempt for VfB Stuttgart attacker Silas Katompa-Mvumpa on deadline day last week.
Sky Deutschland says the deal fell through over a disagreement regarding the form of transfer.
While Fulham offered a loan including a purchase option of €20m, which would take effect after a certain number of appearances, VfB demanded an immediate payment of the same amount.
However, the deal is not completely off the table. Fulham continues to push for a transfer of Silas, which could be completed in the summer.
The Congolese himself is said to have been open to leaving VfB in January.