It's believed the Argentine was Barcelona's preferred long-term option to replace Luis Suarez, but the Catalan side is now looking for more affordable alternatives as Inter refuse to budge from their €100-million valuation, according to Moises Llorens and Sam Marsden of ESPN FC.
The 22-year-old Martinez has emerged as one of the top strikers in Europe this season, scoring 13 goals and forming a potent attacking partnership alongside Romelu Lukaku for an Inter side that sits atop Serie A after 15 matches. He also found the back of the net during Inter's 2-1 loss to Barca at the Camp Nou in October.
It's understood that Barcelona have been keeping tabs on Martinez since his days at Racing Club de Avellaneda in Argentina before he was sold to Inter in 2018.
However, it appears that Barca are prepared to move on and search for more affordable players in Europe and South America.
Red Bull Salzburg prodigy Erling Haaland was previously linked with a move to the Camp Nou, but Barcelona officials apparently won't consider signing the towering 19-year-old, instead preferring a player who's more similar to Suarez.
Suarez, who will turn 33 in January, has scored three goals in his last four matches to bring his season total to 11 in all competitions.