The 28-year old enjoyed a successful spell at Goodison Park last January and was tipped to again join the Toffees for another stint but he recently turned down the potential offer, stating that he needed to rest.
Although disappointed, Moyes said he understands where Donovan is coming from and harbours no ill-feelings toward the former Bayern Munich loanee.
"He would have been good," said Moyes. "He would have fitted in quickly.
"When you bring people on loan how do you know they are going to settle or how long it is going to take?
"He came in and did it right away so my hope was you could have nearly thought of him as an injured player coming back after eight or nine months.
"But it's not to be and I understand his views and wishes.
"He said he might pop over to see us during his holiday but it will certainly not be to play."