Arnautovic appeared to wave goodbye to the West Ham supporters during the team's 1-0 win over Arsenal in the Premier League on January 12 amid reports of a bid from China.
The Austrian had been expected to complete a move to the Chinese Super League last week, but he remained with the Hammers and was left out of Saturday's 2-0 defeat at Bournemouth.
According to the Daily Mail, Guangzhou Evergrande have now pulled out of a move for the 29-year-old, who was believed to have initially been offered wages of £280,000 a week by Fabio Cannavaro's side.
Arnautovic, who has a contract with West Ham until June 2022, has scored 19 times in 53 appearances for the Hammers since a 2017 move from Stoke City.
The Chinese Super League window remains open until the end of next month.