Chinese Super League club, Tianjin Quanjin, were keen on the Spain international and were ready to pay as much as €107million (£90.3million) to sign him.
SFR Sport reports that Costa was offered a salary of over £85million return for a three-year contract.
Costa’s head was turned by the deal and he clashed with manager Antonio Conte, which resulted to him being dropped for the trip to Leicester City.
Tianjin owner Shu Yuhui had confirmed last month, that he held talks with Costa’s agent, Jorges Mendes.
“I made an appointment with Mendes and he came to my hometown to visit me. At that time, we were interested in signing Costa,” he said.
“PSG told us Cavani would only be allowed to leave in June, even though the player himself was willing to join us.
“The same can be said for Costa because Chelsea would only let him leave in June. However, the new season of CSL will almost reach the halfway stage in June, we can’t wait so long.”