Allardyce was locked in talks with the player who is without a club after leaving Sporting Lisbon, but it is thought the defender was asking for too much cash and the gaffer has pulled the plug.
Clubs are still able to sign players outside of the transfer window if they are free agents but Allardyce believes those who are available do not have the quality to step into his squad.
Allardyce told the club's official website: "I don't think there is anyone out there with the quality we need to come and do a job for us. We will have to live with what we have got and then try and recruit again in January."