A two-year deal worth around €275m (£246m) was reportedly offered to Ronaldo, 37, this summer with a transfer fee of £26.5m.
It has been claimed that Ronaldo pushed back on the prospect of playing in the Middle East, but Al-Hilal club president Fahad bin Nafel insisted the move fell through due to sanctions against the team, after a deal involving the signing of midfielder Mohamed Kanno.
Nafel told YouTube channel Thamanya, in quotes translated by The Sun: “Yes, we negotiated with Ronaldo.
“The problem was not in the money or the principle, Al-Hilal is capable of bringing in the stars of the world.
“But it was in the decision of the Sports Arbitration Center that prevented us from registering players.
“We have not stopped negotiating with the players despite the ban decision, but we have delayed entering the final stage of negotiations until the ban is lifted.”