Groningen have revealed the club could not justify selling Erik Nevland for the amount Fulham offered.
Fulham saw an initial offer of 1.2million euros (£890,000) for the striker rejected and returned with an improved bid of 1.5million euros (£1.1million).
That figure was also turned down by Groningen following further talks between the two clubs over the weekend, leaving Nevland to vent his frustration.
But Groningen have admitted that accepting Fulham's bid for the Norway international would not have been good business.
"The first bid from Fulham was 1.2million euros," Groningen general manager Hans Nijland told the club's official website. "That is what we called insufficient.
"Eventually Fulham would not go beyond 1.5million euros. This is not enough.
"For that amount we can not get a good replacement in the short period that is left and we can not justify it to our supporters."
Nevland's disappointment at failing to secure a move to the Premier League strugglers has also seen him hand in the captain's armband at Groningen.
Coach Ron Jans said: "Erik has handed in that armband very politely, but also very definitively.
"There was nothing to find fault with in his attitude against Feyenoord. He was keen and alert, also in the dressing room before the match."
Meanwhile, Groningen have seen Swedish midfielder Rasmus Lindgren rejoin former club Ajax in a 2.5million euros transfer.