Earlier, Turkish state TV channel TRT reported that Fenerbahce had reached an agreement with Montpellier over the transfer of Belhanda.
But the club issued an official statement that they failed to come to an agreement with the management of Montpellier.
The reports linking Belhanda, 22, with a move to Istanbul have been relentless since November 2002.
Montpellier president Louis Nicollin had revealed that he would only let Belhanda leave for the right price.
Nicollin was understood to want closer to £12 million, although a bid of around £10 million was expected to suffice.
Fenerbahce are level on 18 championships with former Uefa Cup winners Galatasaray.
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