The Los Angeles Galaxy forward enjoyed a successful loan spell at Everton at the start of the year and had been linked with a repeat move to Goodison Park next month.
But the United States' all-time leading scorer has decided to rest in preparation for the new Major League Soccer season.
"While I enjoyed my time at Everton last season and still appreciate all the support their fans have given me, I feel that it is important to continue to rest and recover this off-season as opposed to going on loan," Donovan said on Galaxy's official website.
"I never considered being loaned to a club other than Everton, but I have been playing nearly non-stop for the past two years and I believe that this decision will allow me to perform at my best for the Galaxy and the national team throughout the upcoming year."
Source: PA
Source: PA