West Ham have pulled out of a deal to sign Sporting Lisbon midfielder William Carvalho.

The Hammers have decided to walk away after Sporting refused to lower their £40 million valuation for the player.

A senior source at the club told Sky Sports: “He just got too expensive and you have to say no sometimes. Also, he’s not trained for three weeks.

“He has done no pre-season training – so he might have needed four to six weeks to be ready to play for us.”

The 25-year-old has scored nine goals in 137 appearances for Sporting during his four seasons with the club.

Carvalho was a key part of the Portugal team which won the European Championships in France last summer.

He has previously been linked with moves to Manchester United, Arsenal and Chelsea.

West Ham visit Newcastle on Saturday with both sides looking for their first win of the Premier League season.