Barkley was said to be keen on joining Mauricio Pochettino's project with Spurs; with the Argentine being a known admirer of the English international's qualities. However, Antonio Conte pounced at the opportunity to sway the midfielder early in the window and secured his services for £15m.
It was also reported that Tottenham failed to seal a date for the player last summer, before he suffered a hamstring injury that prompted him to pull out of a move to Chelsea during a medical.
"Something happened this month" that resulted in Pochettino changing his stance on the player, despite Levy backing the club all the way to match Chelsea's package for the 24-year-old.
Perhaps the return of Victor Wanyama - who was injured early in the season - was the decisive factor in turning the Argentine away from challenging their London rivals. Spurs aren't exactly short of midfield options these days and it's yet to be seen how the midfielder will return after a lengthy absence.
Tottenham are also said to have prioritised reinforcements in other areas; notably in bringing in natural width for the right-forward role, with PSG outcast Lucas Moura topping the wish-list.