Unnamed sources told The New York Times and ESPN Orlando broke off the negotiations, dealing a blow to the Nets' hopes of adding the NBA's top defensive player to the team as it prepares to move from New Jersey to its new home in Brooklyn.
The Nets were unable to line up enough trade bait to satisfy the Magic, despite attempts to involve multiple teams in a deal, the Times reported.
Instead, the Nets are now reportedly working on signing Lopez and Humphries.
"We've moved on," a Nets source told ESPN. "It just got to a point where we couldn't keep going back and forth with Orlando. They had about 14 days to do something and didn't."
Brooklyn, meanwhile, officially announced its deal for six-time all-star guard Johnson, who it obtained from the Atlanta Hawks in exchange for forward DeShawn Stevenson along with the expiring contracts of guards Jordan Farmar and Anthony Morrow and centers Johan Petro and Jordan Williams.
The Nets also made official the re-signing of Williams, their star point guard, to a reported five-year, $98 million deal and the signing of forward Gerald Wallace to a reported four-year, $40 million contract.