The 29-year-old, who is out of contract and free to leave at the end of the season, recently turned down a switch to Southend United and has now opted against heading to Darlo.
He claimed the commuting distance to the north-east was too far. Elliott joined City in the summer of 2002 from Scottish Premier League side Motherwell and has gone on to score 68 goals in 211 appearances in all competitions.