The Bulgarian striker seemed to be heading for Florence following revelations this morning that the two clubs had come to an agreement over a fee for the centre-forward.
However, since then Fulham and Juventus are both believed to have entered the race for the 31-year-old, which has resulted in Berbatov shunning La Viola.
The club have reacted by releasing a highly critical statement aimed at both Berbatov and the clubs whose interest scuppered the deal.
"ACF Fiorentina announce that the transfer for Dimitar Berbatov definitively collapsed after an agreement with Manchester United had been concluded (with shared exchange of contracts, the first instalment paid and the financial guarantees for the second instalment ratified) and after reaching a verbal agreement with the player over his contract," read the statement.
"During today the English club had allowed their player the written permission to come to Florence for a medical and to sign his contract.
"The player got on the flight with his agent and on tickets paid for by Fiorentina. He never arrived in Florence.
"This was down to outlandish and arrogant behaviour of other clubs, who have nothing to do with fair play and sporting ethics that go even beyond the confines of fairness.
"As for the player, apart from his characteristics and his value on the field, at this stage we are happy he didn't come to Fiorentina. He did not deserve our city, to wear our jersey or the values that represent it."
Juventus have also confirmed that Berbatov has turned down their advances, leaving Fulham as the favourites to land his signature.