After his release from West Ham over the summer, Antonio has been training with the Championship club for the past month.
The Jamaica international has recovered after suffering a leg fracture in a car accident before Christmas.
Antonio was chasing a deal with Leicester to the end of the season, but an injury collected in training has seen the proposal fall through.
"Michail Antonio, unfortunately he had a small setback during the training with us and that means unfortunately we won't proceed in the process we started,” Foxes manager Marti Cifuentes told reporters.
“It's a pity because he's a great guy, a great professional. He's shown really good things, not only from a football perspective but from a personal perspective in the weeks he has been with us. But that changes the plan.”