Inter president Erick Thohir says he pulled the plug on the swap deal involving Fredy Guarin and Juventus' Mirko Vucinic because the deal did not make sense on a financial or sporting level.
The two Italian clubs were locked in negotiations throughout Monday and Tuesday over the transfer, but it ultimately collapsed after the pair failed to reach an agreement.
And the Indonesian businessman has revealed that he consulted senior club figures before deciding to cancel talks once and for all amid protests from Nerazzurri fans.
"After speaking to my closest aides and exchanging views with Massimo Moratti and his son Angelomario this morning, I decided not to continue negotiations with Juventus," a Thohir statement read.
"I felt it was not possible to reach an agreement on a deal in which the opinions of the two parties differed and which did not offer a clear financial or technical benefit to the club.
"As was said in the recent club statement, I have already asked our sporting directors to evaluate other transfer opportunities that will enable us to strengthen the team in line with the financial parameters imposed by Financial Fair Play.
"Again, I believe we must all remain united, the fans, the club and the team so that we can get back to the standing we all want for this club and that Inter deserve."