The club have switched their attentions to other defensive options after conceding defeat in their battle to bring the 30-year-old ex-Deportivo La Coruna man back to Argentina
Coloccini had been heavily linked with a move back to Argentina for personal reasons but now looks poised to remain at St James Park.
The Argentine club confirmed on their Twitter page: "Finally, after long negotiations, we announced that Fabricio Coloccini not join the squad.
"It was not possible to release the Newcastle player for this tournament and therefore the club will look for another alternative to strengthen the defense."
Magpies boss Alan Pardew had previously maintained hope that club captain Coloccini would stay, and the news of San Lorenzo ending their interest will come as a boost for the Premier League outfit as they look to end their slump in form.
Coloccini, 30, joined the club back in August 2008 from Spanish side Deportivo La Coruna and has established himself as one of the club’s most reliable players.