The former Tottenham and Everton midfielder had been linked to Wrexham, a club in the Championship.
The speculation about Alli joining Wrexham was fueled by the team leaving one spot in their 24-man squad open.
However, the final spot has been given to Oliver Rathbone, who was last season's Player of the Year.
Rathbone, a former Manchester United trainee, missed the start of the season due to an ankle injury but is now ready to return to the team.