The 26-year old was recently on trial with the Chinese Super League club but decided to cut his stay short because he knew he did not want to leave Newcastle, even if it was for $400,000 a year.
"I don't think I could have lived there for two years," Thompson said.
"I did enough to get an offer. But I sort of looked at it and decided I did not want to push it any further.
"I told them I wanted to leave. They wanted me to attend another training session, but at the end of the day I did not want an offer hanging over my head.
"I took the easy way out. I did not want to be there so it would not have mattered what the offer was.
"I'm glad to be back and I won't have a problem playing the rest of the year here in Newcastle.
"I love it here."