Southampton have been forced to end their pursuit of Hoffenheim striker Sandro Wagner.
BILD says Saints tabled a €16 million for Wagner last month, but the centre-forward turned the offer down.
Wagner was reluctant to leave his family base, though Saints were ready to return with a improved bid.
However, Hoffenheim have taken up an option to extend Wagner's deal to 2020, so ending any risk of losing the 29 year-old.
TSG chief Alexander Rosen commented: "This premature contract extension is a strong sign (to rival clubs)."