The Italian giants have walked away from negotiations after Villa’s valuation proved too high.
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According to Fabrizio Romano, Juventus and Martinez’s camp held direct talks, but the deal is now officially off.
Villa reportedly wanted a fixed £8.5 million fee without add-ons, which Juventus considered excessive.
The collapse leaves Martinez likely to remain at Villa, although his position as first choice is now uncertain.
The Premier League club have agreed a deal to sign Parma goalkeeper Zion Suzuki for an initial €30m, potentially rising to €35m with add-ons.
Suzuki impressed at the World Cup and is expected to challenge for the starting role, leaving Martinez facing a battle for minutes under Unai Emery this season.