The Nigerian centre-back had been expected to complete a move to Ibrox after the two clubs are believed to have agreed a fee for the player.
However, Rangers have been unable to agree personal terms with Shittu and the deal has stalled.
"There have been negotiations going on between the club and the player for quite a period of time and we have not managed to reach an agreement, so it looks as if that one is finished," Rangers boss Walter Smith his club's official website.