The struggling La Liga side have been watching the former Golden Boot winner for a number of months but their first official approach to sign the forward has been rejected by Wanderers.
But Allardyce has rejected the deal as it wasn't right for Bolton meaning Espanyol coach Luiz Fernandez will have to either come back with an improved offer for the ex-Sporting Lisbon striker or turn his attentions to another target.
"Espanyol have made an offer for Mario" Allardyce confirmed
"We have turned it down because the deal wasn't right for us"
The Bolton boss said that he was awaiting any further developments regarding offloading the 30-year old Jardel.
"We are aware of speculation linking Mario with a number of clubs and i've said all along that we are willing to listen to offers. We've just had the one offer from Espanyol and we'll wait and see if anything materialises" he added