Alpay has openly criticised Villa's lack of ambition in the Turkish media.
He was also unhappy at the way he claims he was treated after injuring his ankle last December against Leicester City.
He eventually went to see a specialist in Germany but there were rumours at one stage that Villa were unwilling to pay the medical bills.
"My unhappiness started because of the way I was treated after the injury last year," he explained. "It has nothing to do with money, and Villa asked to pay my medical bills, but the impression I got is that Villa didn't care for me.
"This has broken my heart. I was in the World Cup select 16. If my price has gone up as a result then Villa will benefit."
A club statement expressed the club's dismay with Alpay's stance, and vigorously defended their part in the negotiations.
"Alpay has two years of a four-year contract still to run and is already one of the highest paid players at the club," the statement read.
"However, the player was looking for a 50% increase on his current deal and the club will not meet that request."
Despite the breakdown in talks, manager Graham Taylor insists he will still play Alpay against Liverpool on Sunday.