Perez and the Rockies had agreed to a $750,000 minor league contract on Tuesday, a goodwill gesture that manager Clint Hurdle called a lifeline for one of the more popular players in club history who has hit hard times of late.
But the team later had second thoughts and decided against bringing him back.
"We just didn't feel like it was a good fit," assistant general manager Bill Geivett said.
Perez has 18 games remaining on an 80-game suspension he received last season after testing positive for stimulants for a third time.
The Rockies hope Perez can find a job with another team.
The Rockies have five players vying for their open second base job, and having Perez join the big league club for spot duty during spring training would have taken time away from Clint Barmes and Omar Quintanilla, the two candidates to replace Jamey Carroll as Colorado's utility infielder.
Perez won a Gold Glove at shortstop in 2000 with the Rockies but has bounced around the major leagues ever since, playing for the Royals, Giants, Cubs and Tigers.
Perez hit just .172 with one homer and six RBIs in 64 at-bats for the Tigers last season, and his biggest contribution was when he started a spectacular double play to end the eighth inning of Justin Verlander's no-hitter.