The Napoli shot-stopper has been strongly linked with a move to Premier League new boys Newcastle in the last week.
It is claimed Reina was keen on a reunion with Rafa Benitez, who he worked during his time at Liverpool.
The 34-year-old is said to be unhappy with life at Napoli despite the Serie A side finishing third and securing Champions League football for next season.
The Magpies were apparently willing to pay £4million to get a deal over the line for the Spain international, who has just 12 months remaining on his current contract.
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Cesc Fabregas (Chelsea)
Pepe Reina has rejected the chance to sign for Newcastle.
But the Daily Mirror claim Reina has opted against a return to the Premier League in favour of staying in Italy.
This will comes as a blow to Benitez who expressed his admiration for the goalkeeper this past week.
“I have a great personal relationship with Reina," Benitez said.
"He's a great goalkeeper.
Pepe Reina has rejected the chance to join Newcastle from Napoli
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"Pepe is a great player, but above all, a leader in the dressing room.
“We missed him at Napoli in the year he went to Bayern Munich, he can make a difference both on and off the pitch.
"Would I take him to Newcastle if he left? I respect Napoli, as that's where he is, and our club has a lot of goalkeepers who are doing well.
“We need to be calm, we'll talk to the club and decide on our targets."
Reina made 37 Serie A appearances for Napoli this season and conceded just 38 goals.