Former World Player of the Year Kaka has no interest in moving to Major League Soccer, according to Sky Italia reporter Gianluca di Marzio.
The Brazilian had been a target of Orlando City, who are owned by compatriot Flavio Augusto da Silva, but the Italian journalist has revealed that this is no longer an option.
Di Marzio reports that Kaka wishes to remain with current club AC Milan, but personal problems may mean the 32-year-old returns to his home country.
He is in his second spell with the seven-time European champions, where he has made over 300 appearances and scored over 100 goals, winning numerous honours.
The midfielder also won the World Cup with Brazil in 2002, but has been left out of this year's squad.
City have long been linked with Kaka and teammate Robinho - who remains on their radar - and the club have previously affirmed their wish to bring in a Designated Player of similar calibre in time for their MLS induction in March 2015.
While fellow new boys New York City FC have brought in David Villa, the Lions are yet to make their first signing. The only players currently on the roster are a select few of the players that have represented the side in the USL Professional Division this year.
United States international Brek Shea has been training with the club, though is not expected to sign a permanent deal.
Ex-England pair Joe Cole and Alan Smith had also been touted as potential options, but both have since found new clubs.
Orlando did, however, announce a partnership with Portuguese giants Benfica on Monday.
The deal will see the two teams play friendly matches, as well as share training facilities and information on youth players.
Da Silva expressed his delight at this latest development in a statement on the Lions' website.
"This partnership is another exciting step in Orlando City’s long-term development plans as it brings us additional knowledge and experience from one of the largest and most successful clubs in the world."
Benfica president Luis Felipe Vieira added: "This agreement represents a partnership with a new MLS club with large ambitions led by a widely respected entrepreneur in Flavio Agusto."
Vieira has been in the role since November 2003.
His side won all three major domestic trophies in Portugal last season, but lost in the final of the Europa League for the second consecutive year.