The former England international has so far failed to make an impact since joining Stoke in the summer and has been widely linked with a switch to the A-League in the January transfer window.
But the Glory have moved to distance themselves from the reports by denying interest in the 33-year-old.
"Michael is a player who comes with a high pedigree but it's not the direction I want to take the club," Perth coach Ian Ferguson said in a statement.
"I am looking for a younger player and a player who has been playing more regularly.
"I have three or four irons in the fire that I am pursuing, which is good.
"In terms of Michael, there was contact from an agent if we were interested, it was discussed at a good level, but I have made the decision he is the not the player needed at Perth Glory."