Valencia sporting director Miguel Angel Corona told reporters Thursday that they bowed out of talks to move midfielder Javi Guerra to Atlético Madrid when they learned the agreement hinged on Diego Simeone's side backing out of a deal for Chelsea's Conor Gallagher.

Corona said Valencia and Atlético had an agreement in place Sunday to transfer Guerra, and terms had also been reached with the midfielder himself. However, Atlético's delay in returning paperwork prompted Valencia officials to approach the club Wednesday morning over the holdup.

Atlético ultimately went through with an agreement to sign Gallagher from Chelsea in a deal worth around 40 million ($44m), sources told ESPN.

"Atlético de Madrid replied that they were trying to pull out of the Gallagher transaction with Chelsea, and if that didn't happen they were not going to be able to do the deal for Javi Guerra," Corona said during the club's introduction of forward Dani Gómez. "It was the first time we were made aware of that. So we decided to bow out because that was not a condition that was discussed, despite all the calls, WhatsApps, emails, legal counsel and contract terms.

"We weren't informed about that situation so obviously, for our benefit and to protect Javi, we bowed out."

Guerra was back at Valencia practice by Wednesday afternoon.

Atlético had already agreed terms with Chelsea last week for the arrival of Gallagher but were waiting for the midfielder to accept the move. The club considered signing Guerra if Gallagher got cold feet.