The former England international has so far failed to make an impact since joining Stoke in the summer and has been widely linked with a switch to the A-League in the January transfer window.
Stoke boss Tony Pulis moved quickly to play down the reports and the Glory have moved to distance themselves from the reports by denying interest in the 33-year-old.
"Michael is a player who comes with a high pedigree but it's not the direction I want to take the club," Perth coach Ian Ferguson said in a statement.
"I am looking for a younger player and a player who has been playing more regularly.
"I have three or four irons in the fire that I am pursuing, which is good.
"In terms of Michael, there was contact from an agent if we were interested, it was discussed at a good level, but I have made the decision he is not the player needed at Perth Glory."
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