The Italian does not look set to be joining this Serie A side.
It was reported by Corriere dello Sport that Bologna and Sunderland had held two meetings about the player this week and that a deal was on the verge of completion.
The report claimed the only factor blocking the move was the final approval of Sunderland owner and chairman Ellis Short. Once he approved the move, which is set to see Sunderland still pay a bulk of the Italian’s wages, he would be on his way to the recently promoted Serie A club.
However, Tutto Mercato Web are now reporting that the deal is essentially dead.
They claim that the two parties are further away than previously reported in terms of the financial sides of such a deal and with the Transfer Deadline drawing toward a close the deal looks unlikely.
Giaccherini was a shock coup in 2013. He arrived from Juventus for a fee reported by The Mirror to be in the £6.5 million region.
The Italian, who has 21 caps for the Azzurri, played 32 times in his first season at the club, scoring five goals.
However 2014-15 was spent mainly on the physio table. He played just 11 games, and scored no goals, in a disappointing campaign.
Now Sunderland will have to find another suitor for his talents, with other Italian sides likely to take an interest.