UPDATED: 1:55 p.m. ET
Blackburn Rovers made an official approach for Schalke's Raul, the German club's sporting director confirmed on Tuesday.
But the 34-year-old striker has already turned down the offer to play in the Premier League.
"Raul's agent told me that his client does not want to go to Blackburn. He will stay at Schalke," Heldt told Bild.
The English team, which is aiming to qualify for the Champions League in the next four years, was keen on signing the former Real Madrid striker and planned to talk with his representatives had he confirmed his desire to leave his current team.
"Yesterday [Monday] we had an official request from Blackburn Rovers, which came via email," Heldt told Bild. "After that we contacted his agent."
The Spaniard opened his account this season with a brilliant individual goal against Koln at the weekend but his muted celebration fuelled further rumors that he was unhappy in Germany.
Speculation increased over the weekend when Blackburn manager Steve Keen said they have made bids for four players, including a striker.
Rovers are short on striking options after Benjani returned to Portsmouth on a one-year deal and Nikola Kalinic joined Ukrainian team Dnipro.