The Chelsea winger was reportedly keen on a move to Bayern, who pursued him doggedly in 2019.
But the two clubs could not reach an agreement for the 19-year-old and SPORT BILD has revealed why.
Sporting director Hasan Salihamidzic called his Chelsea counterpart, the tough negotiating Marina Granovskaia, several times.
And after a number of discussions, there were still major differences in the design of the loan deal.
Chelsea wanted to incorporate various clauses into Hudson-Odoi’s proposed move to the Allianz Arena.
One of them was a financial penalty if the England starlet did not make enough appearances.
Granovskaia also insisted on a €77m obligation to buy if Hudson-Odoi played a certain number of games.
The loan would have been a costly transfer from the start and Bayern ‘used common sense’, calling off talks.