West Ham United loan signing Kalvin Phillips informed Crystal Palace he was not signing for them prior to finalising his move.
Phillips signed for the Hammers from Manchester City to get regular game time.
He was considering offers from other Premier League sides, including Roy Hodgson's Palace.
“You know our interest in Kalvin Phillips," Hodgson told reporters on Monday.
“We did think a player like him would be an ideal person to step into Cheick Doucoure's shoes and bring his talent, quality and experience to us.
“It's not easy to find the right person. Phillips became impossible for us when West Ham showed their hand and wanted to take him. He preferred to go there, we have to accept that.
“[Central midfield] is an area that I know the club are thinking about and would possibly like to help strengthen.
“But who with? And is that player going to strengthen us? We're right back in that ballpark, which is the ballpark that Doug Freedman and Steve Parish occupy. If something comes along and the club can do something, I'll be very grateful."