Coloccini has told Newcastle he would like to return to his native Argentina, with his father Osvaldo, a youth coach at San Lorenzo, earlier saying his son was 'anxious' to leave Tyneside.
The 31-year-old centre-back spent time on loan at San Lorenzo from AC Milan more than a decade ago, and they were keen to seal a deal but were unwilling to pay a fee.
Now San Lorenzo say they will be turning their attentions elsewhere in their attempt to bolster their defence.
San Lorenzo announced on their official Twitter feed: "Finally, after long negotiations, we announce that Fabricio Coloccini will not join the squad of San Lorenzo
"It was not possible to release the Newcastle player for this month and therefore the club will look for another alternative to strengthen the defence."
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