A Canadian government official, who wished to remain anonymous, confirmed the news late Saturday.
The actor had sought residency in Vancouver, Canada after he claimed "Hollywood star-whackers" in the United States were out to kill him. Quaid claims actors David Carradine and Heath Ledger have been victims of "the murderers of Hollywood" he's seeking asylum from.
Last year, U.S. officials refused to extradite the 62-year-old actor and his wife from Canada to face felony vandalism charges in Santa Barbara, California. Authorities have said the couple will be arrested if they re-enter the country.
Quaid's trouble began in 2010 after he and his wife were arrested for causing more than $5,000 damage at a hillside home.
No word on whether Quaid plans to appeal the decision to the federal court has been released.
Quaid is best-known for supporting roles in films such as "Independence Day" and "National Lampoon's Vacation." He is the oldest brother of actor Dennis Quaid.