The Washington-based club made a joint statement with the player saying they will not be pursuing a contract for the current Major League Soccer (MLS) campaign.

"Both United head coach Ray Hudson and Paul Gascoigne have mutually agreed not to pursue a contractual obligation for the remainder of the 2002 MLS season," United technical director Dave Kasper said on the club's official website.

Gascoigne, a free agent after finishing last season with First Division Burnley, has spent time training with United while talks have gone on about fulfilling his dream of playing in the US.

He was lured to America by fellow Geordie Hudson, who was keen to bring the player on board despite his troublesome history.

"Despite the unfortunate and diminishing time schedule, this has been an enjoyable and worthwhile endeavour," Hudson added.

DC United spokesman Doug Hicks did not rule out the possibility of a deal happening in the future.

"I would say never say never," he told BBC Radio Five Live.

"Both sides just felt that right now is not the time to enter into a contractual agreement.

"Paul had a great time not only on the field but off the field, getting to know our guys and (he) felt comfortable.

"I also believe we felt the same way about Paul, we enjoyed his stay and benefited from it. However it's just the timing wasn't appropriate to go forward.

Struggling league

"There are only eight games left in our season so we're kind of at the tail end.

"Also for Paul to get the most out of his body at this point in time, just coming in at the end of the season for eight games, might not have a whole lot of sense either."

Hudson was hoping the former England star would help turnaround their MLS season and breathe new life into the struggling league.

DC United are bottom of the Eastern Conference and have gone seven games without a win.

Their 0-0 draw with the Chicago Fire on Wednesday means they have gone 431 minutes without scoring.