"I thought it would be good for him to get some regular first-team football under his belt but Pablo said no to the move.
"That's the end of it as far as we're concerned and he will be in contention for Saturday's game against Leeds."
Previously the Spaniard turned down the chance to join Scottish Giants Rangers on a short trial whilst Old Firm rivals Celtic were also reported to be interested in the former Celta Vigo player.
Counago turned Rangers down and has admitted on a number of times he would like to stay at Portman Road and earn himself a new contract at the club by firing the goals to send them to the Premiership. Being the highest earner at the club, it's unlikely to happen if promotion is not achieved.