Schalke sports chief Jochen Schneider has confirmed they won't be buying Jean-Clair Todibo.
The French defender joined Schalke on-loan in January - with a permanent option worth euro;25m.
However, Schneider has now confirmed they've allowed the clause to expire: "We will have to take certain decisions, which are necessary.
"Todibo? The deadline passed yesterday (May 31). We no longer have a purchase option."
Everton are in contact with Barca about signing Todibo outright this summer.