The musician had reportedly been offered £1 million to appear on the BBC One reality singing show, according to The Sun.
However, it is now claimed that she is no longer in contention for a role due to concern about paying large salaries to talent as the BBC implements cuts and efficiency savings following its 'Delivering Quality First' review.
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An industry insider told The Mirror that the corporation "just can't afford" to pay multi-million pound salaries.
It had been alleged that Minogue's representatives were seeking a fee of £2.5 million.
Jessie J is currently the only confirmed coach for The Voice UK, although stars including Sir Tom Jones and Black Eyed Peas star will.i.am have been linked to the show.
Preliminary auditions for The Voice UK - which judges contestants on their voices alone via a "blind auditions" process - begin next week ahead of the show's expected premiere in early 2012.
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> The Voice UK: Who do you think should join Jessie J?