Sarr trained with Park for the past few weeks with a view to joining the Absa Premiership returnees this season.
Despite impressing head coach Owen da Gama, the Senegalese hardman was unable to agree terms with the Lions of the North.
According to a source close to Highlands, the club was only willing to give Sarr a short contract, which did not go down well with the 31-year-old.
"Issa Sarr has stopped training with Highlands Park," said the source.
"They failed to agree on terms."
Da Gama confirmed that they will not be signing Sarr.
"Issa Sarr won't be signed by Highlands Park," he said.
Da Gama is also currently assessing ex-Pirates winger Mahlatse Makudubela.
The 28-year-old is a free agent having been handed his clearance by Bucs in July following a loan spell with Chippa United last term.
The former Golden Arrows attacker previously had unsuccessful trials with Free State Stars and an unnamed side in the Czech Republic.