Everton have revealed they 'worked through the night' to complete the signing of Manuel Fernandes but were unable to prevent the Portuguese international from snubbing a move to Goodison Park.
The Benfica midfielder had looked set to complete a protracted move to the Merseyside club last week after passing a medical and watching Everton in action against Blackburn Rovers on Saturday.
But Fernandes, who spent the second half of last season on loan with the Toffees, has now signed for Spanish side Valencia.
The pursuit of the 21-year-old playmaker had been complicated as he is part owned by a third party.
"We worked hard all last week on what was a very difficult and complex three-party agreement," read a club statement.
"Everton staff worked through the night on Thursday, finally reaching agreement with the English footballing authorities on Friday afternoon.
"A similar night's work on Friday left us satisfied that we had both addressed and agreed all issues with the other involved parties.
"However, on Saturday we were informed that another club had come in with a rival bid and, despite sustained efforts over the remainder of the weekend, the player joined Valencia."
Meanwhile, the Toffees have vowed to find a replacement for Fernandes before the transfer window closes on Friday.