The ex-Chelsea attacker is keen to progress under the Ligue 1 side's new manager Rene Girard, despite being heavily linked with a return to English football after a year in France
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Hammers boss Sam Allardyce had been keen on bringing the forward to Upton Park, but, despite interest from the Premier League, Kalou is eager to stay in France and work under recently appointed Lille boss Rene Girard.
"Rene Girard is a coach who can help me progress," the Ivorian told Voix du Nord.
"Under these conditions, I do not see why I should go for something elsewhere."
West Ham had been confident of completing a £3 million deal as Allardyce sought to bolster his attacking options, so the former Feyenoord forward's revelation will be a blow to the Hammers.
West Brom, meanwhile, had also been linked with a move for Kalou, with Steve Clarke mulling over the possibility of reuniting the attacker with old Chelsea team-mate Nicolas Anelka.