The striker was convicted of rape in April 2012, but was released from prison last month having served half his sentence.
His club then released a statement on 11 November in which they stated that at the request of the Professional Footballers' Association (PFA), Evans would be allowed to train with his former club.
The announcement was received with much debate, as four patrons from the club resigned while two of the club’s main kit sponsors threatened to pull out.
United have subsequently retracted their offer to Evans, issuing a lengthy statement on their official website:
"Following the statement dated November 11 and after ongoing and extensive deliberation, Sheffield United Football Club has decided to retract the opportunity for its former player, Ched Evans, to use the club's facilities for training purposes, as was previously intended," read the statement.
"Members of the board have consulted dispassionately with the club's supporters, vice-presidents, community foundation members, executives, staff, sponsors and other relevant stakeholders in order to help it reach this decision.
"Also, the club has been diligent in communicating with The Football Association, The Football League, The Professional Footballers' Association, The Football Association of Wales and The National Probation Service to take further soundings.
"We recognise that a number of our supporters will be disappointed with this decision, but would ask that they remember the responsibilities we have not only to a fine and proud club, whose history stretches back over 125 years, but also to the communities in which Sheffield United is active and to the City we represent.
"The club initially accepted a request from the PFA for Ched Evans to be able to train. The reaction to this has been at an intensity that could not have been anticipated when first announced.
"The club condemns rape and violence of any kind against women in the strongest possible terms. The club is aware that Ched Evans is pursuing legal recourse via the Criminal Cases Review Commission in the determination he has to clear his name. We trust that he will be afforded a fair hearing."
Sheffield currently sit fifth in the League One standings, seven points adrift of leaders Bristol City after 16 matches played.