Preston chairman Derek Shaw has confirmed that Ross Wallace has turned down the opportunity to join the club.
North End had seen an offer for the Scottish winger accepted by Sunderland, but have failed in their attempts to tempt the 23-year-old to drop into the Championship.
Wallace currently finds himself on the transfer list at the Stadium of Light, but is keen to force his way back into Roy Keane's plans.
"I can confirm we made an offer for Ross Wallace which was accepted by the Sunderland board," Shaw told the club's official website.
"However, we have received word back that Ross wants to fight for his place in the Sunderland side in the hope of maintaining his status as a Premier League footballer, which we can fully understand.
"We will continue to back manager Alan Irvine throughout the summer as he continues to identify the right players to take Preston North End forward."