Arsenal identified Perisic as a target late in the January transfer window as they looked to bolster Unai Emery’s squad.
An initial approach for the Croatia international was made last weekend, with the Gunners keen on a loan deal until the end of the season.
Arsenal’s desire to only secure Perisic’s services on a temporary basis was driven by a lack of funds at the Emirates.
And it seems Inter were not interested in striking an agreement on the north Londoners’ terms, so pulled the plug.
Bleacher Report claim Inter’s owners brought a halt to discussions as the transfer window wound down.
And that was due to Arsenal not offering a cash option or proposing a loan with an obligation to buy.
Inter Milan’s decision left Perisic in an awkward position after he had put in a transfer request and agreed contract details with Arsenal.
Having been expected to be allowed to leave for Arsenal, the 29-year-old was forced to train on his own at Inter.
The Serie A giants are planning to reintegrate Perisic into their first-team setup, however.
Inter boss Luciano Spalletti has slammed Arsenal, alleging they “conned” Perisic.
“We’ve got to get Perisic back on track, but also [Radja] Nainggolan, as he had injuries, setbacks and various issues. He needs time on the field and patience,” Spalletti said on Friday.
“As for Perisic, there was this story on the market, but he is a professional, understands his role and yesterday it was already a very different mood.
“These things happen in the transfer window, the player received an impressive proposal and was tempted.
“However, he then realised it was not a true offer, that he’d been conned, and took a step back.
“Now he’ll resume training and as soon as his mind is back fully on Inter, we’ll let him play.”
Despite failing to snap up Perisic, Arsenal did get one deal over the line as they lured Denis Suarez to the Premier League.