The Elland Road club were reportedly preparing to make a move for the Japan international following the expected departure of Crysencio Summerville.
However, despite interest from Hamburg, the Dutch Under-21 international is now set to remain with Leeds according to Italian journalist Fabrizio Romano.
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Whites manager Marcelo Bielsa is believed to have registered an interest in Minamino and has been quoted a fee of around £20million for the former Red Bull Salzburg forward.
The form of attacking trio Roberto Firmino, Mo Salah and Sadio Mane means Minamino has struggled to make an impact after returning to Anfield following a loan spell at Southampton last season.
The 27-year-old has made six starts in all competitions so far this season - with four of them coming in the Reds’ run to the Carabao Cup Final.
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Minamino had to wait until the end of October to make his first Premier League appearance as he came on for Curtis Jones in a 2-2 home draw against Brighton.
Just seven more appearances have followed in the Premier League and that increased speculation the forward could be allowed to leave Anfield this month.
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Clubs in England and France are reported to have made enquiries but it now seems likely he will remain on Merseyside after Leeds withdrew their interest.