Barcelona management have pulled out of talks with Guangzhou Evergrande for Paulinho.
Barca are refusing to meet the Chinese club's €40m asking price for the Brazil international, says El Mundo Deportivo, and the deal is now off.
Barca coach Ernesto Valverde is happy to focus on what he has in midfield, with Andre Gomes and potentially Sergi Roberto being granted a fresh chance.
There is also a feeling the door shut on Paulinho once Neymar agreed to join PSG.
The move for Paulinho was being primarily driven by a need to appease Neymar, who had been unsettled by the sale of close friends Daniel Alves and Adriano Correia over the past year.
Source: tribalfootball.com