The agent of Brazil international Oscar has told Sky Sports that Chelsea are no longer in talks to sign the Internacional star.
Having already reportedly failed in one £20million bid for the playmaker, the European champions appear to have ended their interest.
Oscar's representative, Carlos Meinberg Neto, doubts whether Chelsea will be able to make another offer for the 20-year-old, who is also wanted by Tottenham.
"The first proposal of Chelsea was refused by Internacional," Neto told Sky Sports.
"And I believe that it is difficult for Chelsea to make a counter-offer for the player.
"Right now, we are no longer in talks with Chelsea."
Oscar, capped six times for his country, is regarded as one of the best young talents in Brazil and he has been named in their Olympic squad for London 2012.