The 31-year-old appeared to be close to joining Amakhosi last week, just a few days after leaving Platinum Stars following the expiry of his contract in June.
According to a source close to the player, Chiefs were prepared to offer Mabena a two-year deal, but the striker rejected the proposed offer as he was looking for a three-year deal.
"The deal is off. Mabena will no longer be going to Chiefs. He rejected a good package just because he wanted a three-year deal," the source told Goal.
"Chiefs tabled a two-year offer probably because Mabena is already 31, but they couldn't agree," added the source.
Bloemfontein Celtic have since made contact with the former Orlando Pirates marksman, and depending on how negotiations go, Mabena could soon sign for the Free State outfit.
"He's talking to Celtic. They want him, but that will depend on what they are going to offer him, but I doubt it's anything close to what Chiefs were prepared to give him," concluded the source.
Mabena scored four times and grabbed seven assists in 31 appearances in all competitions for Dikwena last season.