Rayo Vallecano submitted their latest offer for Raúl de Tomás 15 minutes before the transfer window closed in Spain on Thursday, according to journalist Israel Herraiz Fernández.
Espanyol decided to accept the offer at midnight but the documentation for La Liga did not arrive on time as the Spain international looked for a late solution.
He had been previously linked with a move to numerous clubs, including Juventus and Sevilla, but is now set to stay with the Catalan club.
“There is no one to blame. The negotiation has not been closed. Like any negotiation, there are three parties involved and the three parties have not managed to reach an agreement. It’s not at all because all the documentation has not been delivered, there has simply been no agreement between the three parties,” Rayo president Raúl Martín Presa told Marca.
“Between now and winter there is still a long way to go, so we’ll see what we can do. Both parties have wanted to come together, but there were difficult negotiations, which have not been able to materialise. Rayo have tried everything and more,” the Rayo president added.
The deal was for a reported €12m for 50 percent of the player’s rights. In May, Espanyol opened the doors for De Tomás to leave and after months of looking for a way out, no concrete offers arrived for the player from Madrid, only the last-minute proposal from Rayo.