It emerged over the weekend that Aston Villa had agreed on a fee with Watford for the signature of the winger this summer, taking pole position in the chase; Crystal Palace recently had a bid rejected.
The Midlands club had agreed to pay a fee of £25m to Watford and talks were ongoing over Cameron Archer and Kortney Hause joining the Championship club on loan.
Sarr was also discussing personal terms with Aston Villa and a medical was expected to be scheduled this week, as a move loomed.
But it has been claimed that the winger will no longer be joining Steven Gerrard’s side in the coming days.
The deal has collapsed after major differences emerged between the two clubs over the deal.
Aston Villa and Watford failed to come to an agreement over the structure of a deal and the talks have been called off.
The Premier League club are also not expected to try and resurrect the deal before the end of the transfer window.
Sarr wants to leave Watford and the collapse of his move could be good news for Crystal Palace if they again go in for the winger before the window shuts.
