Off contract in June, Goretzka was a Bosman target for the Catalans, with their scouting chief Ariedo Braida making a celebrated check on the midfielder last month in Germany.
However, Sport says word from the player's camp is that he doesn't want to move to Spain. Instead, Goretzka has his heart set on the Premier League.
It's a blow for Barca, where Marc-Andre ter Stegen had publicy declared hopes of his Germany teammate joining him at La Masia.
Ter Stegen stated: "Leon (Goretzka) is a fantastic player. I love him as a man and as a footballer. He has a well screwed-on head and excellent football skills.
"He could play in a big team from Europe. What I saw him with the national team (German) he was good. I am sure he will prove himself in the future.
"I do not know where he will finish, maybe he will stay at Schalke, but he would be a good addition."