The striker has been linked with a move away from Roma this summer.
Roma striker Pablo Osvaldo has rejected the chance to move to Southampton according to Goal.com.
The Italian club were willing to accept the Saints £17 million offer but the Italian international has turned down the chance to move to England, feeling if he does move it should be to a higher profile club.
Southampton were willing to pay a club record £17 million plus add-ons but will now have to look for other options up-front.
Roma are looking to offload the 27 year old this summer in order to provide more funds for new manager Rudi Garca.
Osvaldo moved to Roma two years ago for £14.5 million but his time at the club looks to be over.
Spurs were thought to be interested in the Italian but the clubs new technical director Franco Baldini has doubts over the strikers attitude and the club have now moved for Barcelona striker David Villa.
A move to Atletico Madrid could also be on the cards for Osvaldo but it could all depends on whether the Spanish side manage to sign Sevilla striker Alvaro Negredo.
Atletico are reportedly in talks with Negredo so Osvaldo may have to look elsewhere for a new destination, with the possibility of another Premier League club bidding for him high as they could match his wage demands.