Benfica have issued a statement saying that defender David Luiz will not be moving to Chelsea.
Luiz, a Brazilian international, has been linked with a move to Stamford Bridge for weeks, with the latest rumours suggesting that only £1 million stood between the two clubs agreeing a deal.
Luiz had been valued at £25 million by Benfica, but Chelsea's highest bid reached just £21.3 million and, with only three days left before the end of the January transfer window, the talks have now been ended.
A statement on the Benfica website read: "Negotiations between Benfica and Chelsea over the possible transfer of David Luiz reached a conclusion today without the parties having reached an agreement.
"Contrary to reports in recent days, David Luiz never tried to force his way out of the club and is a model professional."
The Portuguese club added that they would be happy to keep the defender for the foreseeable future, although with the window still open, if Chelsea return with a bid that matches their valuation, a deal could still be resurrected.