Blues boss Roberto Di Matteo has already failed with a £20 million bid for the talented Brazilian international and were thought to preparing an increased £25m offer.
But Oscar’s agent Carlos Meinberg Neto has now revealed that the European Champions have ended their interest and doubts whether they will come back with a fresh approach.
“The first proposal of Chelsea was refused by Internacional,” Neto told Sky Sports.
“And I believe that it is difficult for Chelsea to make a counter-offer for the player.
“Right now, we are no longer in talks with Chelsea.”
Internacional president Giovanni Luigi has also poured cold water on the West London clubs hopes of bringing Oscar to Stamford Bridge stating he wants to engineer the ‘biggest transfer deal ever in Brazilian football’.
Owner Roman Abramovich is unwilling to spend lavishly after splashing out £40m on Eden Hazard and Marko Marin with Luigi inferring that they’d have to break the bank to bag the playmaker.
“I want the transfer of Oscar to be the biggest transfer deal ever in Brazilian football,” he told Radio Gaucha.
“The Chelsea offer isn’t that far from that. Last year, however, Tottenham made two offers for Leandro Damiao. We kept him and he was very important.
“Oscar’s situation is similar. If we get offers for Oscar that match our expectations, we’ll negotiate. But they have to be of the value that mean significant resources for Internacional.
“But those values would be the biggest negotiation in Internacional’s history.”
Oscar, who is also wanted by Tottenham Hotspur, has emerged as one of the world brightest talents over the last 12-months winning six caps for Brazil and will represent them at the London Olympics next month.