Everton and Palace reached an agreement over a £20 million fee for the 26-year-old just before the January deadline.
Advertisement
Advertisement
According to David Ornstein, the deal has now fallen though, and McNeill will remain an Everton player for the next six months.
McNeil has been a bit part player for David Moyes so far this season, starting just seven of his 18 games across all competitions.
It's understood that Palace did submit the paperwork in time and McNeil underwent a medical, but after Jean-Philippe Mateta stayed at the club, they pulled out of the deal.