The Swans are desperate to bolster their squad before the transfer window shuts after selling Gylfi Sigurdsson to Everton for £45m and Chadli has long been on Paul Clement's radar. However, according to the Daily Mail, the Swansea manager has since decided to look elsewhere after being put off by Albion's demands.
It's the third time Swansea have been linked with a move for Chadli, having twice tried to sign the Belgium international, first in 2013 before his move to Tottenham and then last summer. The south Wales club looked on the verge of finally getting their man after Chadli had a row with Tony Pulis over pre-season training.
However, his relationship with the West Brom manager has since improved and the 28-year-old was named in the starting XI as the Baggies won 3-1 away at Accrington Stanley in the second round of the Carabao Cup mid-week.
Clement's decision to sign Sam Clucas from Hull City for £12m earlier this week has also made any deal for Chadli more unlikely, as the 26-year-old plays in a similar position to the West Brom midfielder.
Albion, who on Friday (25 August) completed the signing of Oliver Burke from RB Leipzig in a £15m deal, are also understood to be reluctant to part ways with Chadli without having a replacement already lined up.
A move to the Midlands appeared to revitalise the Belgian, who scored four goals in his first five Premier League appearances for West Brom last season, including one against his former club. However, Chadli's form then petered out and he did not play the full 90 minutes until a 2-0 defeat against Everton in mid-March.
Meanwhile, West Brom's proposed £15m for Spurs centre-back Kevin Wimmer remains on hold as the Austria international weighs up his options.
Pulis was told earlier this week that he would have the final say over whether to sign Wimmer, after the club's board gave the green light to a £15m deal for the Tottenham Hotspur defender. The Baggies boss is also said to be keeping an eye on Middlesbrough defender Ben Gibson.