Rumours had been rife that the former X Factor USA judge had signed a $100 million (£63.7m) contract to perform shows regularly at Caesar's Palace's Colosseum.
According to BuzzFeed, a representative for Caesars Entertainment has now confirmed that it is currently not in talks with Spears about a position.
Emily Wofford, public relations director for the company, said that Caesars Palace is "packed every weekend" for months and the firm is "engaged with a number of today's top artists in discussions regarding headlining residencies at our venues in Las Vegas".
However, Wofford added that it is "always interested" in stars of a similar calibre to Spears.
Major names including Celine Dion, Elton John and Shania Twain currently have residencies at the Colosseum.
Last month, Spears confirmed that she will not be returning for the next season of The X Factor USA. There were earlier rumours that show boss Simon Cowell was seeking to replace her and that she decided to leave voluntarily.