The 27-year old striker was set to be one of three overage players in Senegal's U23 squad for this summer's Games but the Magpies feel he needs some time off after playing for his country's seniors at the African Cup of Nations in January prior to his brilliant exploits on Tyneside.
"It was more the owners, really, who have to pay the guy's money," Pardew said.
"He had a full first half in Germany, he had the African Nations Cup, he had the second half of the season in his first year in the Premier League.
"He then had qualifying games, they want him again for the African Nations and they wanted him for the Olympics, and that was stretching it a little bit.
"As much as I feel for Papiss, because I am sure he would have wanted to play - he's not back yet, he's due back later this week - we have to make a call for his own health.
"I am sure he has got pressure from within the country for him to play and we have to release that pressure for him because physically, he couldn't do that. It's impossible."