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Worcestershire Chief Executive Mark Newton said Nehra, supposed to replace injured West Indian quick Fidel Edwards, had agreed to their terms and the BCCI had cleared the deal.
"The deal had been cleared with the Indian Cricket Board and we were expecting him to come and join us pretty much straight away," said Newton.
"But then he came back to us asking for more money and saying the deal started too soon. As a result, I can confirm he will not be joining us," he added.
Newton felt the high remunerations earned by players during the cash-rich Indian Premier League has led to them hiking their prices in counties.
"It has been extremely difficult to find a suitable overseas player. The Indian Premier League has changed everything. Prices have gone through the roof," he said.
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