The club was hopeful of doing a deal with the Championship and had agreed to accept an offer in the region of around £4 million but the striker was allegedly unhappy with the personal terms of £18k a week.
The deal would have cost the Irons around £2.5 million in a pay off to the 27 year old who spent last season on loan at Middlesbrough and who has a contract with the Hammers until 2022.
He is currently on around £35k a week at the London Stadium and as a result his future looks likely to involve loan spells with wage sharing deals involved for the player – who was also rumoured to interest his former club Preston North End.
Hugill has little future at the Irons and has yet to make a Premier League start having joined under David Moyes for a fee reported to be between £7m – £10m.