Everton had been hoping that Zouma would come back after a brilliant loan spell at Goodison Park last season.
Marco Silva was reportedly willing to pay a considerable fee for Zouma, but it seems Everton hopes of doing a deal are now over.
That is a major blow to the Toffees, as Zouma was such a star for them last season.
Zouma and Micheal Keane looked really solid throughout the campaign, and Silva was keen to link the two up again this term.
Chelsea, though, seem to want to give Zouma another chance to impress at Stamford Bridge.
It is the news that Everton fans were fearing, but as time went by it always seemed more and more unlikely that the Frenchmen would come back to Goodison Park.
It is now going to take a huge bid or a complete change of heart from Lampard for the deal to become possible again.
Everton will surely turn their attentions to other targets in defence now, as Silva is likely to want to sign a centre-back this summer.
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