A deal had been agreed upon, pending Lopez passing his physical, but it appears both teams are going their separate ways.
Lopez would have been a nice addition to the Phillies' bullpen. He went 6-3 with a 2.17 ERA and 10 saves in 64 games in 2012. He became Houston's closer following the trade of Brett Myers to the White Sox and after Francisco Cordero proved ineffective. But Lopez also spent time on the disabled list in each of the previous two seasons with an elbow injury.
The Phillies could pursue another pitcher in a trade, or they could look to the free-agent market. They have liked right-handers Mike Adams and Brandon Lyon in the past.
Todd Zolecki is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.