The actor's wife, Evi Quaid, said Sunday the application was denied because he doesn't have a passport.
She said the passport was seized by Canadian officials and Quaid will be at the U.S. consulate in Toronto on Feb. 6 in an attempt to get it back.
A Canadian government official confirmed late Saturday to The Associated Press that Quaid`s request for permanent status has been denied. The official spoke on condition of anonymity because they were not authorized to speak publicly.
Quaid can appeal the residency decision to the federal court.
U.S. officials last year refused to seek extradition of the actor and his wife from Canada to face felony vandalism charges in Santa Barbara, Calif., but authorities in the coastal town say they'll still have the couple arrested if they return to the states.
Quaid has sought to stay in Canada, claiming he was being hunted by "Hollywood star-whackers" who had killed his friends David Carradine and Heath Ledger.
Quaid's trouble began in 2010 when he and his wife were arrested for causing more than $5,000 damage at a hillside home they were renting.
Randy Quaid is the older brother of actor Dennis Quaid and is best-known for his roles in films such as "National Lampoon's Vacation" and "Independence Day."
He won a Golden Globe award for his depiction of President Lyndon Johnson in a TV movie in the late 1980s.
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