The Turkey international will not be heading to the Signal Iduna this month.
Tottenham Hotspur are currently impressing under Mauricio Pochettino and are now looking to potentially strengthen their squad during the January transfer window and improve.
Malli has scored eight goals in 20 appearances for Mainz in what has proved to be an impressive campaign for him. The former German under-21 international has even made his debut for Turkey, after switching allegiance late last year.
But it had looked as though Tottenham would be missing out on the player, with his former Mainz boss Thomas Tuchel set to take him to Borussia Dortmund.
That deal has now fallen through, as confirmed by both clubs and reported by Sport1.
However the same report suggests that Malli will not be going anywhere this month, with a summer sale the only potential option.
But if Spurs are serious about Malli seeing his Dortmund deal collapse in this manner can only come as good news.