The international police coordinating agency said that after close examination of the case, it concluded that calling for his arrest "was not compatible" with Interpol's obligation to ensure effective cooperation between police in different parts of the world.
Correa, who has been living in Belgium since the end of his term, is wanted in connection with the attempted kidnapping of a political rival, a charge he claims is politically driven to keep him out of politics.
Ecuador's National Court of Justice (CNJ), which had made the request in July, confirmed it received Interpol's response.
It also said Interpol's decision failed to comply with the agency's own regulations and should be reviewed.
Correa, who governed from 2007 to 2017, was aware of the CNJ request and said he was expecting Interpol to reject it given the "evidently political (nature) of the case."
The "Balda Case," as it's known in Ecuadorean media, revolves around Fernando Balda, a former member of the progressive PAIS Alliance -- the still ruling party that Correa founded.
Balda later joined the opposition, becoming an ardent anti-Correa activist and collaborating with extreme right-wing groups in Colombia.
Balda alleged that in 2012, five people forced him into a car, but Colombian police succeeded in intercepting the vehicle. He accused Correa and his intelligence aides of ordering the attack.