Fofana was in Birmingham this week with Villa hoping to complete a deal with Le Havre worth around £800,000, but the move has been put on ice for now.
Villa manager Gerard Houllier said: "The Fofana deal is not done and I doubt it will be done. For the moment, an agreement has not been reached. "
Houllier added: "He's got potential. He's a 19-year-old player, very mature, with a strong personality. He was captain of the France side that won the European Under-19 Championships.
"But I've also young players here already and you've got to have a balance in terms of wages and abilities. It's more likely not to happen."
Houllier is more optimistic about signing Colorado Rapids striker Omar Cummings on loan until March.
Cummings is currently on trial at Villa.
Houllier said: "The MLS season is finished and Omar will probably be here until March.
"He is quick and can also play on the wing and, don't forget, we have not many options up front at this time.
"I don't think we can say yet when he will be involved. We need a work permit and things like that so we will see. There's no cost, no risk."
Source: PA
Source: PA