Davids was on trial with the new MLS franchise over the past week, playing in a 4-1 friendly win over champions LA Galaxy.
But he will now return to his Belgian side Lierse after Timbers coach John Spencer decided against offering him a contract.
Davids is tied to Lierse until June, but the club had given him permission to seek a deal in the USA.
He returns to help the club in their Belgian Jupiler League campaign with fellow South Africans Daylon Claasen and Siboniso Gaxa.
It is likely that all three Bafana stars will leave the club in the summer, with Claasen being tracked by English Premiership QPR and Gaxa having expressed his desire to play elsewhere.
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A mandate is a mandate. Fire him!
Give him another chance! Give him another chance!
Put it to a public vote to decide on who should take charge of Bafana
View Results | Vote Archive
16% A mandate is a mandate. Fire him!
73% Give him another chance! Give him another chance!
11% Put it to a public vote to decide on who should take charge of Bafana
Vote Archive
GEN De la Rey says, with many of his Bulls favourites blossoming in Super Rugby, 2013 will be the year Heyneke Meyer will impress with the Springboks.
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