The Morocco international had agreed terms with the Turkish outfit and was ready to sign a four-and-a-half-year contract at the Sukru Saracoglu Stadium.
However, the two clubs have reportedly failed to come to an agreement over a transfer fee, with the French champions holding out for £12million plus bonuses.
That has sparked speculation over a possible move to England, with north London duo Arsenal and Tottenham heavily linked with the 22-year-old.
Italian giants Inter Milan were also linked with Belhanda earlier in the transfer window, though they denied making a formal offer.
Belhanda has confirmed talks between Fenerbahce and Montpellier have stalled; indicating that he may stay in France should the deal not go ahead.
"The two clubs have been talking," he said. "If they do not agree anything I can't do anything.
"I will stay and finish the season."
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