The Scot is director of scouting and recruitment at Southampton and was offered the chance to lead the Ibrox side's playing structure.
But the 34-year-old has opted to remain in his role with the Premier League outfit.
Wilson was identified to become part of Rangers' new structure after manager Mark Warburton's exit.
Head of recruitment Frank McParland and assistant manager David Weir also left Ibrox early last month and McParland has since become director of football at Nottingham Forest.
Portuguese coach Pedro Caixinha has been linked with the managerial vacancy at Rangers.
Ross Wilson has turned down the chance to become Rangers' director of football, BBC Scotland has learned.