Top scorer Grabban has chosen to remain and fight for his place for the time being, after personal terms between himself and the Sussex club broke down after the two clubs had agreed a fee earlier in the week.
Boss Steve Evans confirmed to the clubs website that the deal was now dead.
"Lewis is a top class footballer and for that reason alone I'm delighted he remains a Rotherham United player. There has been significant interest in the player but to date only Crawley Town have agreed to meet the valuation I placed on the player on my arrival at the football club.
"Only Lewis himself or Crawley Town can turn the tap on which has in the last couple of hours been turned off. In the event the player is with us next season, everyone at Rotherham United will be delighted. Part of the rational in the deal being agreed with Crawley was to allow the boy to move back south, but he has chosen to remain part of our family and that should please everyone who has the Millers at heart."
Meanwhile defender Miachael Raynes has had his contract terminated by mutual consent.