The 34-year-old Spaniard had hoped to convince Light Blues boss Ally McCoist to hand him a second spell with the Glasgow giants but Novo has confirmed no contract offer has been made.
The former Raith Rovers and Dundee frontman won three Scottish Premier League titles with Rangers but quit the club in 2010.
He is now without a club after leaving Spanish second-tier side Huesca last month but has spent the last few days training with McCoist's men at Murray Park.
However, he said: "I don't think the Rangers thing is going to happen to be honest.
"It would have been my preferred option and the club knows that. But if nothing has happened by now it's not going to happen ever.
"I always said I wanted to come back and finish my career here but it's not up to me. You can't have everything you want and that is life. I haven't spoken to Ally about coming back. He let me come in and train but we didn't talk about anything else. Now I just wish him all the best.
"As for me, I'm just trying to keep myself fit and hopefully find another club. Over the last few days I've heard about a few offers in Europe, but I'm still waiting for things to happen."
- Sports & Recreation
- Ally McCoist
- Raith Rovers