According to reports, Chelsea were frustrated by Sevilla's approach over negotiating a transfer fee, with the 22-year-old being wanted by the Blues during the latter stages of the transfer window.
However, the French defender eventually ended up staying at Sevilla, with the Spanish giants deciding against selling him right before the transfer deadline.
Chelsea manager Thomas Tuchel was keen on signing a centre-back this summer, with Kounde being identified as the priority, especially since Kurt Zouma was sold to West Ham United.
Kounde has established himself as one of the finest young defenders in Europe after joining the Spanish club from Bordeaux in 2019.
He was also rewarded for his great form over the course of last season with a place in the France squad for Euro 2020, even making an appearance against Portugal in the group stages.
Sevilla changed their demands for the Frenchman in the final stages of the transfer window, ending any hopes of a late switch to another club.
According to ESPN, Chelsea were shocked by the change in thinking from Sevilla, as well as by the unorthodox approach to negotiations that the Spanish side opted for.
Chelsea reportedly had all but agreed a deal to sign Kounde for a fee of around £43 million plus add-ons, with the player himself also agreeing personal terms with the London club.
However, Sevilla then changed their stance by demanding their release clause, which is set at a whopping £77 million, which must be paid in full.
Sevilla were reportedly influenced by Chelsea's decision to sell Zouma, with them knowing that the Blues had additional funds and even more motivated to sign a new centre-back.
Kounde has started the season strongly for Sevilla, playing in two of the club's three La Liga games so far, with Sevilla maintaining clean sheets for the two games he played in.
While Sevilla blocked the transfer from happening, Kounde is still keen on joining Chelsea, and he could push for a move when the January transfer window opens.
Chelsea have not dropped their interest in him, and they could be set to prepare a bid for him if Sevilla reduce their asking price.