The young Croatian is set to remain in Spain next season.
The player is known to countryman and current West Ham manager Slaven Bilic, who wanted to bring him in from Barcelona ‘B’ – who will be playing in Spain’s third tier next season.
But with a move to West Ham seemingly on the cards, suddenly the rug has been pulled up from underneath The Hammers.
It is now reported that Barcelona will not be selling or loaning him to West Ham at all.
Instead, he will be sent on loan to La Liga rivals Celta Vigo.
Mundo Deportivo are reporting that Barca would much rather see Halilovic head out on loan to a a team in Spain – so they can properly track their progress.
Barca have good links with Celta Vigo. Current boss Luis Enrique is the former Celta manager and the likes of Rafinha have enjoyed loan spells at the club in the past.
West Ham will be gutted if they lose out on Halilovic, as it seemed a deal that should have been easy to get tied up.
Now they are out of Europe for the season they have lost yet another bargaining chip in their hunt for the player, which makes matters worse.
It looks like Halilovic is slipping from their grasp.