The Bombers, who are already without fellow tall David Hille for the remainder of the season due to a knee reconstruction, were hoping Laycock could return to the AFL to bolster the Dons' big man stocks.
But he suffered a set-back on his broken foot when resuming in the VFL last month, delaying his potention return to League football.
Football opertions manager Paul Hamilton told the club' website that the decision on Laycock had been made after a surgical review of his broken foot gave the 201cm ruckman little chance of returning any time soon.
"He will be reviewed again in a month to see if a crack in this foot is healing and, if it's not getting better, it is possible there will be further surgery," Hamilton said.
"Obviously it's disapointing for Jason, and it's very disapointing for the club considering our limited ruck resources at the moment."
Laycock has played 58 games for Essendon but did make a senior appearance this year.
