McCourt was rumoured to be making his way back to club where he spent three years prior to his 2008 transfer to Celtic.
He recently left Luton Town after just one season and was said to be angling for a move back to Northern Ireland.
However, it will not be with Derry City as manager Kenny Shiels has decided to focus on other targets.
McCourt was at Celtic Park for five years after joining for a fee of £200,000. He played 88 times for the club he supported as a boy, scoring 10 goals.