Former Spain striker Raul has rejected a move to Blackburn, according to Schalke general manager Horst Heldt.
The Bundesliga side received an official inquiry from Blackburn about the 34-year-old, according to a statement on the Gelsenkirchen club's website.
But Heldt told www.schalke04.de: "Raul told us that he wants to stay with Schalke 04 and asked us to reject Blackburn Rovers. We have already done so. We are pleased that Raul wants to continue to contribute to all our sporting success."
Raul joined Schalke last summer after 16 years at Real Madrid, during which time he broke the Spanish club's all-time goalscoring record, and has impressed in the Bundesliga, netting 14 times in 36 games.
But speculation continued to suggest he is not happy in Gelsenkirchen and that his relationship with the club has broken down.
On Tuesday he was linked with a move to Blackburn, and Schalke confirmed contact in a statement which read: "FC Schalke 04 took an official inquiry from Blackburn Rovers, in which the Premier League club said they were interested in signing Raul."
Heldt added: "Our coach Ralf Rangnick, my (board) colleague Peter Peters and I have always stressed that we do not want him to leave."