GWS chief executive David Matthews said his club would not select Tippett in next week's pre-season draft.
The former Adelaide forward submitted the terms for his contract to the AFL this week, and Matthews said GWS would not match them.
"Internally we established a value for Kurt Tippett based on his capabilities and whilst we were hopeful, his terms submitted this week confirmed that we are simply not in a position to pay what he wants, particularly for a player who will miss most of the year through suspension," Matthews said.
Tippett was suspended for 11 matches last week following an investigation into his previous contract with the Crows.
The Swans reaffirmed their desire to draft the full forward last week, and now appear the sole suitors for his services.
