The 33-year-old striker, who is currently without a club after letting his Paris Saint-Germain contract expire, had previously been mooted as a replacement for Diego Costa.
However, following Costa's strong performance in the Rojiblancos' 6-1 win over Granada on Sunday, the club's chief executive confirmed that a deal to sign Cavani is not feasible.
"Diego Costa is a player that Atletico Madrid needs," Cerezo added. "The season is very long. You don't have to complicate things.
"I don't think there will be a change at Atleti. Cavani's circumstances have not been the same as those of Luis Suarez.
"He is a fantastic player, but everything is different. It wasn't because of me or his brother [Walter Guglielmone, also his agent] that he didn't come."