Schalke Null Fier (04) have ended their pursuit of Stephen Appiah after failing to meet Fenerbahce's demands.
The 26-year-old Ghana midfielder is now to set to stay with Turkish champions.
Fenerbahce have made no secret of their desire to hang on to their most prized asset who is contracted until 2010.
Furious club officials even reported Schalke to Fifa last week after accusing the Bundesliga side of making an illegal approach for their player.
On Tuesday, Fenerbahce changed their tune and said they would consider Appiah's transfer but only if Germany striker Kevin Kuranyi moved in the opposite direction.
But Schalke are not keen on letting Kuranyi leave and have decided to end their chase for the Black Stars captain.
"We will not be reopening the Appiah case," Andreas Muller, Schalke team manager said in a press statement.
"As a result of the Fenerbahce executive committee's demands, Schalke have decided to terminate the whole Appiah affair.
"There is no way we will be giving up Kuranyi. He is a crucial player in our squad and one of the best players in the team.
"We understand that this is a decision from Fenerbahce, one that we must accept."
Appiah is the subject of interest from several European clubs including English Premiership sides Arsenal and West Ham.
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