It is believed the 26-year-old was closing in on a move to Fiorentina after agreeing a contract with the Italian side, while West Ham had settled on a fee worth £9million plus bonuses.
Obiang has been in and out of the West Ham side under Manuel Pellegrini, but has been used more from the bench and as cover rather than a starter. The likes of Mark Noble and Declan Rice have kept Obiang out of the side.
The report claims Obiang has been looking to leave West Ham for quite some time, but has been waiting for the right opportunity. A move to La Viola seemed to have struck a chord with Obiang.
But a move has been cancelled at the last minute, though Fiorentina are working hard to resurrect a move that would se the tough-tackling midfielder return to Italy four years after joining West Ham from Sampdoria.
Obiang has a contract at West Ham until the summer of 2022, but a move away from the London Stadium is still on the cards, with French side Lille willing to offer the same as Fiorentina had done before.