West Ham have lost the opportunity to sign Maxi Gomez from Celta Vigo, according to Sky Sports.
The two clubs were unable to agree upon a payment plan for the Uruguayan's 44.5m release clause.
La Liga rules state release clauses must be paid in full at the competition's headquarters in Madrid by the selling club.
The Hammers were not comfortable with this procedure and have instead opted to move on from Gomez.
Valencia are expected to complete a player-plus-cash deal for the 22-year-old on Wednesday.
