The Olympic gold medallist is said to be continuing her preparations for the 2008 Beijing Olympics.
"Her main target should be the 2008 Beijing Games, so we should not let her take risks at the Asian Games," Shang Xiutang, China’s national swim team deputy head, told the state press.
In the Asian Games trials earlier this month, Luo finished second in the 100m breaststroke to young star Luo Nan in a time well short of her gold medal swim in Athens.
The 22 year old was been surrounded in controversy since she was sent home from the national team's training camp with speculation ranging from troubles with her relationship, sponsorship money or a refusal to train since the East Asian Games last November.
Luo left the 2005 world championships without a medal after swimming with an injured ankle and the same problem caused her withdrawal from the short course world championships in Shanghai earlier this year.