The Uruguayan played under Chelsea boss Andre Villas-Boas before his former boss left for England and admits he wanted to join him once again.
He told Sport 890: "The club could not agree and I will continue in the colours of Porto,"
"They said they did not want to sell me and weaken the team, and as a player I have to respect that decision."Chelsea grew weary and withdrew their offer. My agent told me the two clubs just could not reach an agreement.
"I just have to focus on Porto and try and produce a performance, it will not be easy but that is my challenge."
Source: DSG