
Former York striker Jason Walker has turned down an offer from Gateshead, three weeks since he started training with the Conference Premier club.
The 29-year-old left Ostersunds FK of Sweden in November and last month Heed boss , external for a second time, having taken him to York in 2011.
"It's disappointing as we've basically got him fit," Mills told BBC Newcastle.
"But football never surprises you and you're either loyal or you're not."
The news comes just three days after the Tynesiders allowed striker Richard Brodie to extend his loan at Southport for the rest of the season.
Gateshead beat Hyde 4-0 on Saturday and now sit eighth in the table, a point outside the playoffs.
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