Tottenham were reported to have been interested in the Italy international but Italian giants Juventus had emerged as his most likely destination if he left Spain.
But following the sale of Santi Cazorla to Malaga for 19million euros, the pressure on Villarreal to cash in on the striker has eased and he will now stay with the club.
The former Manchester United marksman had been keen on a deal to Juventus but will now adhere to the club's decision not to sell him.
"Giuseppe Rossi has officially been taken off the market after they sold Santi Cazorla to Malaga," his agent Federico Pastorello told Sky Italia.
"The economic problems which the club had have now been resolved by that transfer.
"Nevertheless, this decision has liberated Rossi as he's now just focusing on playing football and scoring goals.
"He's not used to being at the centre of such negotiations and tension. He wanted Juventus, but he's accepted the position taken by the president of Villarreal."
Source: Team Talk
Source: Team Talk