Reports during the weekend said Miami was set to send Valderrama to the Revolution for U.S. National team forward/midfielder Joe-Max Moore, after Valderrama said he couldn't play for new Fusion coach Ivo Wortmann.
"The deal is pretty much a dead issue," Revolution general manager Brian O'Donovan said Monday night. "We were told by the league that Valderrama made a decision to stay with Miami, and we're pursuing other things."
Major League Soccer deputy commissioner Sunil Gulati said the deal was dead for now "but it could be resurrected."
Fusion owner Ken Horowitz said that although deal with the Revolution was off, "that doesn't mean there won't be a deal," possibly with another team.
Valderrama was expected to be at the Fusion's practice Tuesday, team officials said.
Fusion midfielder Marcelo "Popeye" Herrera has left the team to join Belgrano in Argentina's first division, which creates another spot on the team's roster for a foreign player.
Evening out the foreign player-to-American player ratio was a sticking point in the Valderrama deal, the Miami Herald reported. Moore is American and each MLS team is only allowed five foreigners.