Sevilla sporting director Joaquin Caparros claimed Morata was eager to join the club, but that signing the 26-year-old would be "impossible" due to Chelsea's demands.
"Sevilla are an appealing team for a lot of players and Morata wanted to come," Caparros said, according to ESPN FC's Eduardo Fdez-Abascal. "We had talks but when we started talking about fees, we quickly realized that it was impossible and we gave up."
It's understood that Morata's representative met with Caparros last week to confirm Sevilla's interest. But it now appears the player will have to explore other opportunities, with a return to Spain still a possibility if Atletico Madrid maintain their interest.
A report last week claimed Atletico will look to procure Morata's services in a loan-to-buy deal. Los Rojiblancos are apparently encouraged that an agreement can be completed this month based on their positive relationship with Chelsea following the sales of Diego Costa and Felipe Luis.
In any case, Morata's time at Chelsea looks to be nearing its end as a result of yet another poor campaign at Stamford Bridge.
After scoring 11 Premier League goals last season, Morata - who previously represented Real Madrid and Juventus - has just five to date in the 2018-19 term.
Meanwhile, reports suggest Chelsea may look to replace Morata by signing Argentine striker Gonzalo Higuain, who's currently on loan at AC Milan from Juventus and apparently wants to reunite with Chelsea boss Maurizio Sarri.