Crystal Palace have rejected Everton's offer of £70m plus Cenk Tosun and James McCarthy for Wilfried Zaha, report Sky Sports.
The Toffees are determined to land the Ivory Coast international before Thursday's transfer deadline, but Palace are demanding at least £100m for the winger.
And according to the Guardian, that valuation means the deal is in effect dead.
Zaha is reportedly disappointed with Palace's decision to turn down Everton's bid, with the winger having believed the club would accept "reasonable" offers for him last summer.
Arsenal had previously been linked with the former Manchester United forward, before acquiring Nicolas Pepe from Lille instead.
Zaha is now holding out for a move to a European club, with the transfer window on the continent remaining open until the end of August.
Everton take on Palace on the opening weekend of the Premier League season.
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