The German midfielder looks set to remain in his homeland.
The report claimed Leeds were ready to spend £780,000 to sign the player, meeting a release clause in the defensive midfielder’s contract.
However, it is now being suggested that Leeds have missed out on his signature.
In fact, if his current team Paderborn are relegated to the third tier of German football, he will be allowed to leave on a free transfer this summer to the Bundesliga club.
Hannover themselves have been relegated this season and Bakalorz looks set to be playing 2. Bundesliga football next season, despite the apparent interest from Leeds United.
Bakalorz, who previously played for Borussia Dortmund and Eintracht Frankfurt, has been one of Paderborn’s best players this season despite the club’s poor performances in the second tier of German football.
How serious Leeds’ interest ever was will likely never be known but it looks increasingly likely that the German will not be at Elland Road next season.