The only way he would sign an extension would be if the Camp Nou side can meet his €40 million per year salary along with a signing-on bonus of €40 million.
The Blaugrana are in no position to meet such a demands, talks have come to a halt as it stands now.
This means that the former Borussia Dortmund winger will be leaving Camp Nou on a free transfer when his current deal runs out in the summer.
Barcelona losing Dembele for nothing could also cause problems for the Camp Nou club with regards to the registration of Ferran Torres.
The 21 year old Spaniard recently completed a move from Man City in a deal worth €55 million.
Ferran Torres becomes second signing of the Xavi Hernandez era, following the arrival of Dani Alves.
However, Dembele’s decision not to extend his contract may have some repercussions on the registration process.
The Frenchman renewing with a lower fixed salary as proposed by the club would have reduced some burden on the wage bill for Barcelona.
Camp Nou side will now have to find alternatives like off-loading some unwanted players to make enough room on the payroll to accommodate Torres while staying compliant to La Liga’s Financial Fair Play rules.
Just two days before the winger is free to negotiate with foreign clubs, it seems a parting is more inevitable than ever.
According to reports from England, Newcastle United reportedly made Dembele an eye-watering offer, while the Red Devils have held a long-term interest in the France winger who seems set to move as a free agent in the summer.
It’s almost time for Newcastle to buy all the players on their wishlist.