The 30-year-old spent a trial period with the Premiership new-boys but was left in limbo after a specially arranged friendly match was cancelled.
Wolves were poised to make a decision on whether to offer the Frenchman a contract based on his performance in that game, but have since moved to sign Brazilian Emerson to strengthen their midfield department.
Echouafni says he is now awaiting a response from the Black Country outfit to see whether they are still interested in his services.
"I was effectively going there, but I don't have any news at the moment," said the player.
"I was due to play in a friendly match in which they were going to judge my worth, but ultimately it was cancelled.
"They told me that they would give me a response, so now I am waiting. I am expecting a fax from them."
Echouafni conceded he finds himself in an undesireable situation after being informed he was out of the first-team picture at Rennes, while remaining unsure of any concrete interest in him.
"It's a very difficult situation. After being discarded by (Laszlo) Boloni (Rennes manager), I went to go and train with the club's youth and reserve players and it was hard to find motivation.
"I met the directors of Saint Etienne about ten days ago.
"They told me that they were interested but that they needed a few days to think things over. Since then, I have heard nothing.
"Honestly, I would love to stay in the French First Division, I feel I am able to and want to prove myself again there."
