Wales second row Bradley Davies had "no desire" to rejoin Cardiff Blues from Wasps, according to Welsh Rugby Union (WRU) chairman Gareth Davies.
The 29-year-old will join Ospreys next season on a three-year national dual contract with the WRU.
The Blues made an offer to sign Davies - who had a year left on his Wasps deal - but would not pay the transfer fee required for his early release.
"Bradley had no desire to return to the Cardiff Blues," said the WRU's Davies.
"Bradley put in writing he did not want to return to the Cardiff Blues.
"All of Welsh rugby should be glad to get a player of Bradley's presence, experience and skills back in Wales."
Davies joined Wasps in 2014 from Cardiff Blues, where he spent nine years.
"We were very interested and we made an approach for Bradley," said Blues chief executive Richard Holland.
"But we made it very clear that we weren't going to pay the significant transfer fee demanded by Wasps to release him from his contract.
"We would have loved to have him back here at the Blues and we tried more than once. But Bradley wanted to go to the Ospreys."
The WRU and Ospreys would not disclose who paid the compensation fee for his early release from his Wasps contract.
|Wales' dual-contracted players|
|Cardiff Blues: Sam Warburton, Gareth Anscombe|
|Ospreys: Alun Wyn Jones, Dan Biggar, Dan Lydiate, Rhys Webb, Scott Baldwin, James King, Rory Thornton, Dan Baker, Bradley Davies (from 2016-17)|
|Scarlets: Jake Ball, Scott Williams (until summer 2016), Samson Lee, Rhodri Jones (until summer 2016), Jonathan Davies (from 2016-17)|
|Newport Gwent Dragons: Tyler Morgan, Hallam Amos|
Under the terms of national dual contracts, the WRU pays 60% of the player's salary and the region pays 40%.
But WRU chief executive Martyn Phillips said negotiations between the union and its regional sides were transparent.
"The other regions are totally in the loop. We don't do anything in isolation. We talk to them about everything we do," he told BBC Wales Sport.
"They're aware of every transaction of players, who comes back to their original region. That opportunity is there.
"We followed exactly how we said we'd work. They [the regions] understand that, [Pro Rugby Wales chief executive] Mark Davies understands that."
Davies is likely to feature for Wasps in the Premiership semi-final against Exeter Chiefs on Saturday, 21 May, before linking up with Wales for their tour of New Zealand in June.
He becomes the ninth player to sign a national dual contract with Ospreys.