Hibernian finally accepted a bid worth around £2m from Millwall after a few days of negotiations between the two clubs.
The Championship side had a bid rejected by the Scottish team earlier in the week but the two clubs finally worked out an agreement.
The 25-year-old had also been expected to move on from Hibernian and move south of the border in the ongoing transfer window.
But there has been a twist in the transfer saga as the move is now off as Nisbet has had a change of heart.
Millwall had the terms in place to sign him but Nisbet has decided against joining the Lions.
Nisbet is now set to continue at Hibernian unless another club make a move for him before the end of the window on Tuesday.
The forward has 18 months left on his contract and his future is likely to come under the scanner in the summer if he remains at Hibernian.
