The Cottagers have been looking to bolster their wide options following the departures of Neeskens Kebano and Manor Solomon.
Although Adama Traore has arrived from Wolverhampton Wanderers, Marco Silva is determined to sign another winger before Friday's deadline.
Fulham had identified Ocampos as a potential option, and they subsequently reached an agreement with Sevilla over a potential transfer.
As a result, it was left to the player to decide whether he wanted to leave Champions League football behind and complete a move to the Premier League.
According to journalist Ryan Taylor, the Cottagers have been unable to agree personal terms with the Argentina international.
The 29-year-old trained with Sevilla on Tuesday and made it clear that he wants to remain at the Ramon Sanchez Pizjuan.
Ocampos, who has less than 12 months remaining on his contract, has made 165 appearances during his time as a Sevilla player, registering 39 goals and 18 assists.
After seeing the proposed transfer break down, Fulham will now turn their attention to other transfer targets, as they look to strengthen their squad in the final two days of the transfer window.
They are still hoping to sign a replacement for Aleksandar Mitrovic and are believed to be lining up a move for Werder Bremen striker Niclas Fullkrug.
Fulham have already made a couple of additions in the final week of the transfer window, recruiting right-back Timothy Castagne from Leicester City and goalkeeper Steven Benda from Swansea City.
Silva is currently preparing his side for Saturday's tricky away fixture against Premier League champions Manchester City.