The Ibrox club were willing to pay £15 million in a bid to fend off competition from Manchester United and Arsenal, but van Nistelrooy is intent on a move to England - or staying in Holland.
"We could have brought van Nistelrooy into Ibrox so I called his agent because he comes from the same town in Holland where I was brought up," revealed Advocaat. "But he told me that there`s no way Ruud will come to Scotland.
"Rangers` name is much bigger in Holland than it was two years ago, but that doesn`t mean to say that it impresses everyone. Fernando Ricksen agreed to leave AZ Alkmaar and sign for Rangers when he had earlier turned down the chance to go to Ajax.
"Kevin Hofland, from Fortuna Sittard, is thinking over Rangers` offer. But Van Nistelrooy has made up his mind to go to The Premiership," he revealed in the Sunday Mail.
The most hotly-awaited transfer in Europe needs to be agreed before May 1st, or the Dutch international will stay with PSV.
Hoflund, meanwhile is being tipped to join PSV Eindhoven in preference to a switch to Scotland.