The former Chelsea captain was thought to be on his way to Russian outfit Spartak Moscow for a season, but has instead decided not to take up the option after consulting his family.
His decision not to move to Russia led to links to newly promoted Cardiff, but Warnock has ruled out the possibility of a deal after insisting that he is happy with his defensive options.
Warnock told talkSPORT: "I don't think for us it would be the situation as we've got to have a lot more energy really.
"He has got that class though hasn't he; he did well at Villa last year. But I think if he is going to play again it would be something like a Villa, if I'm honest."
The Cardiff boss added: "He's still got a lot to offer. There are not many left for managers of those leaders on the pitch. I'm lucky I've got three or four in the squad I've got. Managers dream of having a leader or two, don't they?"