NEW YORK CITY—A week after a strong possibility emerged that JPMorgan Chase & Co. would relocate its headquarters to new construction at the Related Cos.' Hudson Yards development, the possibility has sputtered out. The New York Times and Bloomberg reported Wednesday that the financial services giant had decided to stay in its current offices rather than move to the Far West Side.

A would-be deal reportedly foundered over the question of tax incentives, among other issues. The bank had sought $1 billion in tax breaks to build two office towers, one 62 stories and a second 40-story tower next door, on the Far West Side. However, Alicia Glen, deputy mayor for economic development, told the Times earlier this month that “there is no way” that the de Blasio administration would approve such a package.

Following Chase's decision to stay put, Glen issued a statement that the outcome “validates our approach, and our belief that these deals often come down to factors that have nothing to do with taxpayer subsidies. We're glad that JPMorgan has decided to maintain its buildings and its work force right where they are for the foreseeable future.”

Other issues, according to published reports, were the costs of financing construction—estimated at roughly $6 billion—and the availability of the parcels at 50 and 55 Hudson Yards, on which the bank would have built roughly four million square feet of office. After reviewing its options, Chase opted to remain in its headquarters at 270 Park Ave. as well as 383 Madison Ave., both of which it owns. The company also has hundreds of back-office employees at the Metrotech complex in Brooklyn.