The Croatia international is out of favour at the Allianz Arena and was open to the prospect of moving on in January.
Everton were prepared to offer him a route out of Bayern, with David Moyes leaving it late to bolster his Goodison Park ranks.
Pranjic, who can operate in defence or in midfield, saw Bayern block his path, though, with their unrealistic demands causing talks to break down.
"I had an agreement with Everton for two-and-a-half years," the 30-year-old told Sportske Novosti.
"I was ready to board a plane and I was really happy because I knew that Everton were serious and that they had big plans for me.
"But now it is all over and this is a catastrophe. I can't describe the negative feelings I have.
"Bayern wanted so much money that everybody knew that Everton would not pay.
"I'm so unhappy because I was sure that I would be leaving Bayern. I don't play and now the opportunity to play in the Premier League has gone. I'm so unhappy."