The 24-year old American forward has been training with the Seasiders over winter in a bid to keep fit but will not be calling Bloomfield Road his home after interim boss Ferguson ruled out that possibility.
"There is nothing happening with Freddy," Ferguson told the Blackpool Gazette.
"He's come in and worked hard with us. He is a great lad but I'm more than happy with what I've got. I have a strong squad."
However, it has been confirmed that Adu, who has had stints with such clubs as Monaco, Benfica, Philadelphia Union and Bahia, will remain with the Tangerines so he can continue working on his fitness as he searches for a new club.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball