كتب : Hatem Maher
The Alexandria-based club opened talks with the towering defender earlier this week to sign him.
"Azmi will not move to Ittihad," Basri told FilGoal.com without disclosing the reason behind the deal's collapse.
The 26-year-old is seeking to find a new club after terminating his contract with Zamalek by mutual consent.
It was the second successive season for Azmi to leave the Cairo giants after few months of joining them.
He could now be heading to Masri, who made no secret of their desire to land him in the close season.
It remains to be seen whether Azmi can resurrect his career in Europe.
He had spells in with Greece's PAOK Saloniki, Turkey's Hacettepe Spor and Cypriot duo Anorthosis Famagusta and AEK Larnaca.