The world champion said after winning his fourth Crucible title last month that he would "have four, five, six months off and assess the situation".
True to his word, The Rocket has not signed the World Professional Billiards and Snooker Association agreement ahead of the entry deadline for the first two ranking events of the season.
O'Sullivan was critical of the demands of the contract in a statement released by his management company.
The statement claimed: "I have decided not to enter any tournaments for the time being, including this year's Premier League and WPBSA ranking events.
"I have not signed the player's contract as I feel it is too onerous and I am in a stage of my career where I don't wish to make this commitment.
"I still want to play snooker and visit those places around the world such as China where snooker is adored.
"I hope to remain involved in the sport in some way in the future."