Henry had looked set for a third spell in north London after returning to England to train with Arsene Wenger's team during the MLS off-season.
| ARSENAL LATEST
|33/1||Arsenal are 33/1 to win the Champions League with bet365
In addition, the former Liverpool manager believes that Henry will prefer to rest with his family over Christmas after his partner gave birth to a baby boy in August.
"I find it strange what we hear in the media," Houllier told Canal+. "If Arsene needed him, he would have called me or [sporting director] Andy Roxburgh, but this is not the case.
"I do not think both parties need to have this second comeback. Moreover, he became a dad. I think he will want to enjoy the holidays."
Henry spent two months on loan with the Gunners at the beginning of 2012, scoring two goals in seven appearances in all competitions.