The Scot spent last season on loan at Mallorca but their relegation from the Primera Liga meant they could not afford a permanent deal.
Villa outcast Hutton was set to make another loan move back to Spain but Mallorca say the full-back is asking for too much.
Real coach Llorenc Serra Ferrer said: "I'm pessimistic. Everything had gone well, starting talks with Aston Villa.
"But it has become complicated, because the player is now asking for other things and that cannot be. It has to stop."