The two west London rivals had agreed a £22 million deal for the highly rated 19-year-old in the remaining hours of the summer transfer window.
George was expected to put pen to paper on a five-year contract at Fulham, with Chelsea having a hefty sell-on clause included in the deal.
Now, according to BBC Sport’s Nizaar Kinsella, that deal has collapsed and George will return to Stamford Bridge for at least the next four months.
Fulham have managed to secure the signings of two other wingers, however, with Kevin and Samuel Chukwueze joining Marco Silva’s side.