After several failed attempts to strike a deal, Dortmund confirmed their exit from the pursuit once and for all, with 1. FC Köln unwilling to accept an offer that would ultimately have been worth more than €50 million.
Sports director Lars Ricken confirmed the collapse of talks directly.
"Said El Mala is not a Borussia Dortmund player and won't become one this summer," he said. "We've had open discussions with the people in charge at 1. FC Köln in recent days, but they rejected our final offer.
"Borussia Dortmund won't be making another offer and won't continue pursuing a transfer for the player."
Even with Dortmund out of the picture, El Mala could still leave Geißbockheim before the window closes. RB Leipzig have shown recent interest and now see an opportunity, with Bild and Sport Bild reporting that the Saxony club are ready to put €50 million on the table as a guaranteed fee.
A further €5 million in easily achievable bonuses would come on top, along with another €5 million for "exceptional success," and a sell-on clause is also understood to be under discussion. Leipzig still need approval from their supervisory board, with a decision on whether to submit the offer expected this week.
The move stems from Leipzig's search for a new attacking star following the departure of Yan Diomande, who left for Real Madrid for €125 million plus bonuses. RB Leipzig had appeared close to a deal for Racing Strasbourg's Diego Moreira, 22, but the Ligue 1 side's valuation of around €70 million proved too rich for the Bundesliga club.
Attention has consequently turned to El Mala. After Borussia Dortmund's exit, everything had pointed towards the 19-year-old winger staying in Cologne, with sport director Thomas Kessler emerging as a tough negotiator for any interested club. Whether Leipzig can ultimately convince Köln on the financial terms remains to be seen.
El Mala himself is said to be open to a move to Leipzig, according to Bild, and is reported to have already discussed the possible transfer with teammates in the Köln dressing room.