The Primera Division holders had made a €25.5 million bid for the Brazilian, with the Blues demanding double, but the centre-back did not want to leave Stamford Bridge
The Catalan giants made an initial €25.5 million offer to Jose Mourinho's side but were told that it would take closer to €50m for the Blues to sanction a sale.
"There was an official offer [from Barcelona] but I decided to stay at Chelsea," Luiz told reporters while away on international duty.
"I am happy to play for a big club and be in the national team to represent my country."
Barca eventually turned their attentions to Liverpool centre-back Daniel Agger after negotiations with Chelsea, but were shot down on that front as well.
Coach Gerardo Martino eventually declared himself "happy with the team I have" and no defender made the move to Camp Nou.
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