A potential move which would have seen the two players leave their respective clubs, was reportedly close to going through in the coming days.
However, Inter have this evening released an official statement following boardroom talks, which puts an end to the transfer.
"President Thohir, having conferred with Massimo Moratti and the club's management team, did not feel that the necessary technical and financial conditions were in place to come to a satisfactory agreement," the statement read.
"The president has already instructed the club's sporting directors to assess other transfer opportunities, with the aim of strengthening the team while respecting the parameters imposed by the Financial Fair Play rules."
News of the swap deal angered Nerazzurri supporters, who felt owner Thohir was attempting to sell one of the club's best players.