The Black Cats had agreed the framework of a £17.5m deal for Lauriente, with the 26-year-old having flown to Portugal yesterday, where Regis Le Bris and his players are currently on a pre-season training camp.
It was anticipated that the transfer would be concluded either today or tomorrow, with the bulk of an agreement already in place.
However, problems began to emerge yesterday evening, and Sunderland officials have decided to call off talks and end their interest in Lauriente.
It is understood that the Sunderland hierarchy were unable to reach a full agreement with all the relevant parties involved in the proposed transfer.
As a result, the Black Cats have informed Lauriente, his representatives and officials at Sassuolo that they will not be continuing with their previous transfer plans.
The breakdown of the deal is a blow given that Sunderland had focused in on Lauriente after holding preliminary talks with a number of attacking players in the last few weeks.
The Black Cats’ options in the wide-attacking positions were reduced last week when Romaine Mundle suffered a hamstring surgery that has resulted in an operation that means he will miss the start of the new season.
However, the Black Cats have a number of alternative attacking options they could now revisit, with Le Bris’ side due to return to pre-season action when they face Sporting tomorrow night.