Achraf Hakimi's wage demands were believed to have been far higher than Chelsea were willing to pay, according to reports.
The Blues were looking to sign the wing-back from Inter Milan, however Paris Saint-Germain completed a deal for the Moroccan instead.
According to The Athletic, the Blues were unwilling to meet Hakimi's wage demands, giving PSG the chance to sign the defender.
The club were in talks with Inter Milan over the signing of Hakimi this summer and even offered to swap players in order to bring the price down for the winger, who ended up moving to Paris Saint-Germain. However, no official bid was made.
Chelsea discussed the signing 'extensively' before withdrawing from the race due to his wage demands.
Hakimi signed for the French club PSG for a reported fee of €60 million with €10 million in add ons, bringing the deal to a total of €70 million and with a hefty wage demand, Chelsea were not willing to spend such a big amount on the player.
The Blues are set to go all out for £150 million rated Erling Haaland at Borussia Dortmund, who is the club's main priority this summer.
Therefore, a move for Hakimi on high wages never made sense for Chelsea.
The west London club will now be focusing on alternative targets this summer who will demand less wages. Adama Traore has been identified to provide competition for the right wing-back position.
What Thomas Tuchel has said on summer acquisitions
“Two or three (signings) could be very, very good. It’s a constant thing to never deny change; that you always bring new energy, new guys who question the old beliefs, who challenge everybody in the training and in matches, so I think it’s a good thing.
"We don’t need another seven and another complete turnover because it’s also our job to keep on improving, because we have still a young squad and it’s not about stealing from them the chance to prove it again, that they are capable of growing and evolving. But we have some ideas, of course, to make the group stronger, and I think this can always be a positive thing to challenge all of us."