The Argentinian striker was on the market after buying out the final year of his contract at Real Betis and looked to be heading for Ewood Park on a three-year deal.
However, the 29-year-old, who spent last season on loan at River Plate, has told local media in his homeland that a final agreement could not be reached with Rovers.
"We couldn't reach an agreement over the question of money and now I will look at other clubs," said Pavone, who may now sign for Buenos Aires outfit Lanus.
Meanwhile, Rovers midfielder Amine Linganzi is expected to return to Preston North End after an injury cut short his Deepdale loan spell last season.
Source: Team Talk
Source: Team Talk