Despite Hargreaves' requests to join Manchester United and Bayern's recent purchase of Mark Van Bommel the German side has refused to sell Hargreaves.
"We have to accept there is no way Bayern will allow this transfer to happen," Hargreaves' agent Roman Grill was quoted as saying by British media on Tuesday.
It was rumored Manchester United offered 17 million pounds for the Canadian born player; however Bayern have refused to sell its World Cup phenomenon.
Still, Grill remains hopeful that a deal could be struck next transfer season.
"His only hope is that if United remain interested in him the deal could happen at a later date," he said.
Bayern's refusal to let the midfielder leave most likely comes as a surprise to many, including Van Bommel, who was under the impression he would be Hargreaves' replacement.
Van Bommel had been quoted earlier by BBC Sports as saying that Hargreaves was on his way out when discussing why he had chosen to leave Barcelona.
"I have left Barcelona because there were not enough guarantees that I would play every week," he said.
"At Bayern the chances of playing are bigger, they told me, with Ballack gone and Owen Hargreaves close to leaving the club."
Despite Van Bommel's predictions, Bayern manager Uli Hoeness has different plans for the players.
"We want to move forward with Mark and Owen. We would be crazy to sign Van Bommel as a replacement for Hargreaves," he told BBC Sports on Monday.
Van Bommel is now seen as a likely replacement for Germany captain Michael Ballack, while Hargreaves, who is contracted to Bayern until 2010, will keep his old role in his old team.