The Daily Star is reporting that the proposed move for the 31-year-old to sign for the Blues this month has fallen through after discussions between the two clubs broke down.
The same report says that it was thought that a fee had been agreed between the two clubs and that the personal terms were the stumbling block.
However, the article claims that it is in fact the discussions between the two clubs that have broken down in recent days.
Chelsea FC have been heavily linked with a move to sign Dzeko this month as Antonio Conte looks to bolster his attacking options before Wednesday’s transfer deadline.
The Blues have already tied up a deal to bring midfielder Ross Barkley to Stamford Bridge from Everton at the turn of the year.
Meanwhile, Chelsea FC booked their place in the fifth round of the FA Cup on Sunday with a 3-0 victory over Newcastle United at Stamford Bridge.
The west London side will now switch their attentions back to Premier League affairs and their home clash against Bournemouth on Wednesday night.
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