The Winnipeg Free Press reported Thursday that the Jets captain decided against joining Avangard Omsk during the NHL lockout.
The news came a little over 12 hours after the team announced Ladd's signing.
According to the Free Press, the 26-year-old had a change of heart because his wife Brandy is pregnant.
"I couldn't really justify leaving her by herself," Ladd told the paper. "The more I thought about it, the more I thought I didn't want to leave."
Ladd would have been just the second locked-out Canadian NHLer to play in the KHL. Jets teammate Evander Kane made his debut with Dinamo Minsk earlier this week.