Palermo president Maurizio Zamparini has confirmed that the club have given up on their attempts to sign Zdravko Kuzmanovic.
The Basel ace has been a target of Palermo and Celtic during the January transfer window, but his contract demands have put the Serie A side off.
Zamparini has revealed that a fee had been agreed between themselves and Basel, only for Kuzmanovic's valuation of himself to end any chance of a switch to Italy.
"The negotiations have failed," Zamparini said. "With Basel everything was okay, we had already signed.
"Then we met with Kuzmanovic and his father who asked for a four-year deal worth é¼1.5million.
"That's an incredible sum for an Under 21 player and for that reason everything failed."
Palermo's decision may reignite Celtic's interest, who had all but given up hope of signing Kuzmanovic.
However, it is yet unknown whether the SPL side will be willing to meet the 19-year-old's demands, with Gordon Strachan viewing the midfielder as a medium-term prospect.