"Antti will be looking for another club, he is not going to play understudy to anyone at this stage of his career," Cody told skysports.com.
Niemi has already been linked with moves away from the club - but Cody has dismissed the most recent speculation suggesting Hull were ready to do a deal.
"It is absolute nonsense," he said.
"I have a very good relationship with Hull and also Phil Brown - who I have known since he was playing at Blackpool.
"He has not spoken to me about Antti and so there is no interest there as far as I am concerned."