The England international’s £35million transfer to Stamford Bridge broke down after Barkley rejected it late on Thursday night.
Chelsea were informed and the conversations ended amicably before a medical could begin.
He made his decision based on long-standing interest from Tottenham, as Barkley is keen to work with Mauricio Pochettino.
The problem, however, was that Tottenham did not bid. At no point this summer did Spurs chairman Daniel Levy make contact with Everton or attempt to do a deal for the 23-year-old.