Owusu had indicated that he would welcome a move to Millwall and told the Western Morning News that he was tempted by the idea of returning to London.
"If the chance arose to come to Millwall," said the striker last week. "I would definitely look at it. Kenny tried to sign me when he was Swansea boss.
"He is a great coach and a great manager, and I would love to work under someone with so much ambition that he would leave Manchester City to be manager of Millwall. It is nice to be linked to such a big club - they are a team with great potential who should be striving to get back into the Championship."
However it now looks like Jackett has shifted his focus elsewhere, hence Owusu's decision to stay with The Glovers.