School officials say the idea to build in Placer County is no longer feasible, partly due to the poor real estate market.
The private university in Philadelphia had announced plans four years ago to build on about 1,100 acres of donated land.
The school had envisioned a 6,000-student campus on about 600 acres in Roseville. The other 500 acres was to be sold and partially developed to help finance construction.
However, the institution will retain a presence in the area. Drexel began offering graduate degree courses at a facility in Sacramento in 2009. Officials say that program will continue.