"The reason the deal didn't happen was because the Chargers were asking for too much," Jackson's agent, Jonathan Feinsod, told the newspaper.
Jackson's agents refused to comment on the terms of the deal with the unnamed team -- thought to be one year and $7 million plus incentives -- and Chargers general manager A.J. Smith refused comment on Sunday.
Feinsod and Schwartz denied a report that they are seeking $50 million over five years with $30 million guaranteed.
As a restricted free agent, Jackson, who is prepared to sit out the entire season, was tendered at $3.268 million this offseason, but he didn't sign by the June 15 deadline and forfeited approximately $2.5 million because the Chargers exercised their right to lower the offer. Some people believe Jackson, who made his first Pro Bowl last season, has outperformed his five-year rookie contract, and he now wants a long-term commitment from the Chargers.
Jackson also has been suspended by the NFL for the first three games for violating the league's substance-abuse policy, and there is a debate about whether he can serve the sentences concurrently.
Jackson's agents told the Union-Tribune that the NFL Players Association stance is that Jackson would not be subject to roster exempt status if traded. The league says Jackson will remain on the roster exempt list regardless.
Schwartz said on Sunday that "31 other teams are trying to get clarity" on the rule as well.
The Associated Press contributed to this report.