Ellison was recently targeted by Chester's local rivals Wrexham

The 28-year-old had been set to join County on loan until the end of the season, before signing a permanent contract in the summer.

However, the ex-Stockport player then raised objections to the move.

Meanwhile, Chester have re-signed their former utility player Stephen Vaughan, 23, a year after he left the club.

Vaughan made 59 league appearances for Chester before leaving for Boston United in January 2007, but had been a free agent after departing the Pilgrims last year.

He is the son of former Chester chairman Stephen Vaughan, who resigned from the board in December but remains the club's majority shareholder.

Ellison originally joined Stockport in November 2001 and went on to make 52 appearances for the Hatters.