Toulon not for sale
The 56-year-old colourful comics publisher had said in September he was looking at selling the three-time European champions.
"I've decided not to continue with the project to sell Toulon," Boudjellal told reporters.
"I took the decision to stay last weekend,"
In October, film producer Gerard Barba and lawyer Lucien Simon had been in advanced talks over a possible 10 million euro ($10.4 million) acquisition.
When announcing his desire to sell the club in September, Boudjellal had complained about heavy criticism of his tenure.
He said he wanted "another life" and wondered why he put up with taking "hits every week".
The larger than life Boudjellal has been almost as present in newspaper columns and television reports as his team following some outrageous comments.
In 2012 he was given a 130-day ban by the French League after describing a defeat to Clermont as "sodomy".
He has presided over the most successful period in Toulon's history since buying the club in 2007, winning the second division title in his first season.
They won the European title three years in a row from 2013-2015, claimed French Top 14 honours in 2014 and also lost two Top 14 and two European Challenge Cup finals in that period.
Their success was built upon a policy of high-profile acquisitions including former All Blacks captain Tana Umaga, England legend Jonny Wilkinson, former Australia back-row forward George Smith, South Africans Bakkies Botha, Victor Matfield and Bryan Habana, and New Zealand internationals Sonny Bill Williams, Ma'a Nonu and Ali Williams.
Agence France-Presse