The 24 year old, who progressed through the ranks at City before joining Fulham in 2003, had been training with Steve Coppell's side and was scheduled to play in the friendly against Aldershot.
City assistant manager Keith Millen told the club's official website: "Liam rang the manager to say that he'd been thinking about the trial overnight. For whatever reason he's decided that it wouldn't be right to return here and has therefore decided against playing. We wish him well for the future."
Rosenior, who finished last season on loan with Ipswich Town, is looking for a new club after being released by Reading.