The former-Liverpool front-man only joined the Fratton Park outfit last summer, scoring 11 league goals, having started all 38 league games for Pompey.
However, the 6ft 7in forward is believed to be disappointed with the club’s decision to sell star performers Lassana Diarra and Jermain Defoe since his arrival.
And with fellow lynchpins Sylvain Distin and Sol Campbell also being linked with moves away, Crouch is thought to be tempted to depart for pastures new.
Blackburn, Fulham and Tottenham Hotspur were all thought to be keen on acquiring the 28-year-old, who has netted 16 times for his country, as well as Sunderland.
And the Black Cats had reportedly agreed personal terms with the front-man after he met manager Steve Bruce last week to discuss a £12 million transfer.
However, the Wearsiders have now decided not to pursue the matter further, with Crouch keen on remaining in the south.
"Naturally this is hugely disappointing for us as Peter was one of our primary targets," said Bruce.
"I know he was impressed with the set up here when he came for talks, but it's simply a matter of geographical location and that's not something we can affect.
"What's pleasing however is that it shows the intent of the club going forward that we are trying to bring in players of his calibre, and we will continue to pursue other targets.
"We have a number of irons in the fire at present and we will be looking to make several additions to our squad in the coming weeks.''
NEWS: Black Cats keen on Crouch
NEWS: Cascarino - Crouch perfect for Spurs
PORTSMOUTH FANS! Check FourFourTwo.com’s ever-expandinginterviewsarchive for more stuff to read:
Boy's A Bit Special Armand Traore
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SUNDERLAND FANS! Check FourFourTwo.com’s ever-expandinginterviewsarchive for more stuff to read:
Boy's A Bit Special Anthony Stokes
Ask A Silly Question Peter Reid
What Happened Next? Marco Gabbiadini
Plus! Nyron Nosworthy on Weekend Wonders and Sunderland on Talentspotter
