Manchester United were heavily linked with a move for Real Madrid star Morata after failing to sign Antoine Griezmann from Atletico Madrid.
Griezmann was their No1 target going into the transfer window but Atleti's transfer ban ultimately saw him sign a new contract and stay.
United have since splashed out £75million on Romelu Lukaku, fending off interest from Chelsea to win the race for his signature.
That decision – coupled with their reluctance to sell David De Gea to Real – means a deal looks dead in the water.
Alvaro Morata's next club: Where could the Real Madrid ace go next? Wed, July 12, 2017
Where is Alvaro Morata tipped to go next? (Odds provided by Paddy Power)
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Where could Alvaro Morata go next? Odds provided by Paddy Power
Things can happen in the last few days, but I wish Alvaro the best
But Mata still thinks 'things can happen' with United and Morata.
"It looks tough to see Alvaro Morata in a Red Devils shirt with the arrival of Romelu," he told Cadena Cope.
"We've signed an important player in attack and it's difficult, although you never know.
"Things can happen in the last few days, but I wish Alvaro the best."
Mata's words come less than 48 hours after manager Jose Mourinho all but admitted defeat in a move.
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Juan Mata thinks Manchester United could yet sign Romelu Lukaku
Manchester United gave up on Alvaro Morata to focus on Romelu Lukaku
But, in using the present tense, the Portuguese inadvertantally teased they were not ready to give up just yet.
"I am nobody to talk about a player who is not from my team. Nor one from Real Madrid," Mourinho told reporters in LA.
"We have had interest (in Morata). It is obvious, it is public and we have not reached an economic agreement.
"It is a right of Madrid to ask for their players the amount they want. We will not be the ones who put a price on a Real Madrid player. I cannot criticise Real Madrid and I can not criticise my club.
"(We made) offers we thought were fair and yet no agreement was reached."