Watford have confirmed they accepted a bid from another Premiership club for Ashley Young but that the 21-year-old refused to discuss personal terms.
Young has been at Watford since his schooldays
West Ham were reported to have succeeded with a £9.65m offer.
"We have stated many times over that we have no need or desire to sell Ashley Young, or any of our players," said Hornets chairman Graham Simpson.
"But having given due consideration to all of the factors I felt that this offer was right for the club."
Aston Villa have been linked with a move for Young and with West Ham out of the chase, Tottenham may also renew their interest.
Young, 21, has scored four goals in 23 appearances this season.
The Hornets had already turned down an initial offer of £7m from West Ham before the Hammers returned with a renewed bid of £8m plus £1.65m based on clauses.
Speaking last week, Hornets boss Aidy Boothroyd indicated he would be willing to sell Young - but only at a price which he deemed appropriate.
"There are players out there who have gone for £8m-plus who do not have what he has," he said.
"Ashley is the trump card in the Premiership. There are not many players outside the top four clubs who are better than him."