Davis handed in a trade request last week and is trying to force through a move to Los Angeles Lakers.
The centre has been sidelined with a finger injury over recent weeks.
However, he has now returned to full fitness and wanted to get back involved as his team-mates fight at the bottom of the Western Conference.
But Pelicans bosses felt it was not right to put Davis back into the fold while his focus is elsewhere.
“New Orleans star Anthony Davis eagerly sought to make his return last night against Indiana, but was rebuffed by management,” ESPN journalist Chris Haynes wrote.
“There’s the impression that his absence could potentially extend until the conclusion of Thursday’s trade deadline, sources said.”
Davis has previously explained that once 100 per cent fit he would like to return to action.
“My intentions are to play,” Davis said last weekend.
“I’ve been working to get my finger back healthy.
“Obviously, it’s a tough situation, but my intention is to still play and when I’m able to play, I plan on suiting up.”
Pelicans head coach Alvin Gentry revealed how the decision was out of his hands.
“I don’t make those decisions,” he said.
“I was told he’s been cleared to practice. That’s what I know.”
The Lakers had their first five bids rejected for Davis.
But they returned to the Pelicans with a sixth offer last night which has yet to receive a response.