It had been suggested that the 38-year-old, who currently represents Sydney FC, was keen on a return to European football, but the experienced Italian will not be joining Ajaccio.
The statement read: "For several weeks now, the club have been in advanced talks with famous Italian striker Alessandro Del Piero.
"He will not be coming to AC Ajaccio. Due to family matters, he has decided to continue his adventure in Australia."
Del Piero scored 290 goals for Juventus between 1993 and 2012.