The two clubs recently agreed an ?8million fee for the England Under-21 international, who had reportedly agreed personal terms.
Ince met with Cardiff manager Malky Mackay this week and visited the club's Vale training ground, but the winger, who has just become a father for the first time, has opted to stay with Blackpool, who are managed by his father Paul Ince.
A brief statement on Cardiff's official website read: "Cardiff City Football Club can confirm that Blackpool midfielder Thomas Ince will not be joining the Bluebirds.
"Having agreed a fee with Blackpool FC towards the end of June and with the player and agent happy with personal terms offered, Blackpool manager and Thomas' father Paul confirmed on Friday that, due to the recent birth of Thomas' first child this week, the player didn't want to leave his family or the Seasiders at this stage of his life."
Ince, who progressed through Liverpool's academy, made only one senior appearance at Anfield before departing for Blackpool in August 2011 when a compensation fee was agreed between the two clubs.
He has made a total of 88 appearances for the Seasiders, who appointed father Paul as Michael Appleton's permanent replacement in February this year.