Daniel Cousin will see out the season at Rangers after Fifa blocked the striker's proposed move to Fulham.
Rangers accepted a £3million bid from the Premier League strugglers during January's transfer window and Cousin agreed to the switch.
But, after playing for Lens prior to joining Rangers last August, Cousin required special dispensation from Fifa to change clubs again.
Fifa have spent the past month deliberating the issue and have confirmed the 31-year-old must stay at Ibrox until the summer.
Gers chief executive Martin Bain revealed the club's frustration at the delay in Fifa reaching a decision and is disappointed with the final verdict.
Bain told the club's official website: "It has been a frustrating time for all the parties concerned and we are disappointed that it has taken Fifa so long to make a decision.
"We received a good offer from Fulham for the player and entered into the proposed transfer fully aware he had already made two appearances for Lens before joining Rangers - one start in the Intertoto Cup in July and a late substitute appearance against Bordeaux in the French league.
"Both clubs' legal advisors agreed that there was solid ground for an appeal to Fifa and are disappointed with the decision which prevents Daniel from completing the move.
"As a result, Daniel remains a Rangers player, fully committed to helping the club push for domestic and European success this season."
Cousin concedes the chance to move to Fulham was 'difficult to turn down', but insists he is happy to play for Walter Smith's side for the remainder of the campaign.
"Obviously when I heard I had the opportunity to move to the Premiership and the offer was right both for myself and Rangers, it was difficult to turn down," said Cousin.
"However, I made it clear all along that I have enjoyed my time at Rangers and I am more than happy to stay, fight for my place and help the manager and the rest of the squad compete for silverware this season."