Rumors of a deal for Lee began Friday night and on Saturday it was announced that a trade was in place for pitching prospect Garrett Gould.
However, Lee spent the weekend mulling whether he would accept the trade or not and he had not made a decision by Sunday.
"If they don't want to be here, then I don't want them" Dodgers manager Don Mattingly said on Saturday.
Mattingly wasn't bitter and he understood why Lee would want to stay somewhere he felt comfortable. However, after not hearing a firm decision, it appears the Dodgers lost patience and backed out of the deal. Lee had not made a decision following his game on Sunday.
Lee is in the final year of a six-year, $100 million contract with a limited no-trade clause that would have to be waived for a deal with Los Angeles to be finalized.
Before Sunday night's game against the Mets, Mattingly said he wasn't focused on the possibility of acquiring Lee, as he was simply worried about his current team.
"It's almost like worrying about tomorrow's problems," he said. It's hard for me to worry. You get energy for today and stay in the moment about where we are at."
The addition of Lee would likely have meant a spot on the bench for slumping first baseman James Loney, who was hitting .236 heading into Sunday with only two home runs and 21 RBIs in 74 games.
"You have to realistically look at production we're getting and how do we improve that," Mattingly said. "If anything, you try to improve your club as much as you can and I think as we look at our club, you look at areas where we need to improve."Injured superstar Matt Kemp said he would welcome an addition, but stressed his confidence in the team taking care of business whether the Dodgers make a move or not.
"It's always good to get people to make your team better," Kemp said. "I don't know exactly what people think we need. We did a great job with what we have here. If we get somebody, that's good. But if we don't, it keeps going on and we have to keep playing the way we have in the first half."
Gould, the pitching prospect who would have been involved in the deal, is ranked the Dodgers' 10th-best prospect by MLB.com.