Former Real Madrid striker Raul has turned down a move to Blackburn Rovers, according to his German side Schalke.
Earlier on Tuesday, general manager Horst Heldt said Schalke had given the 34-year-old until 1200 BST on Wednesday to decide on the transfer.
But the club later said on their official website that Raul had rejected Blackburn and wanted to remain with them.
"The agent told me that Raul does not want to go to Blackburn," Heldt said.
No-one was available to comment from Blackburn.
After defeat by Wolverhampton Wanderers on the opening day of the season on Saturday, manager Steve Kean said he wanted four more players before the transfer deadline.
Raul joined Schalke last summer after 18 years at Real Madrid.
The former Spain international, whose contract with Schalke runs until the summer of 2012, has been a success at the German club, scoring 14 goals in 36 league games.
His five Champions League goals helped his side reach the semi-finals where they lost to Manchester United.