Al-Ittihad made a late bid for Tottenham striker Richarlison last week.
The SPL mega spenders turned to the Brazil international after being blocked by Liverpool from prising away Mohamed Salah.
The Telegraph says talks between Al-Ittihad and Richarlison's agents were held on Friday.
However, with a 10pm deadline, the two parties ran out of time to close an agreement.
Al-Ittihad may try again in January if Liverpool continue to resist their attempts for Mohamed Salah.