The physician is serving four years for the involuntary manslaughter of Michael Jackson - who died of acute Propofol intoxication in 2009 - and was hoping to be transferred home and monitored under an electronic tag, but his lawyer, Valerie Wass, says the Sherriff's department won't allow him.
Speaking to RadarOnline.com she said: "The Los Angeles County Sheriffs Department maintains that Dr Murray isn't eligible for house arrest or electronic monitoring."
Many lower risk criminals have been transferred to tagging schemes due to overcrowding in Los Angeles jails. While no reason was given for Dr Murray's request being refused, he has previously been refused bail on account of his being assessed as a flight risk.
Earlier this week Conrad was rushed into Los Angeles County Hospital as he was concerned about possible blood clots on his legs, although the results came back negative.
Los Angeles County Sheriff Spokesperson Nicole Nashida confirmed: "Mr. Murray is alive and well. We are working with him in addressing his medical concerns and any other issues that he has. Mr. Murray is being treated just like any other inmate at the jail."
The doctor - who has always disputed giving Michael a fatal dose of Propofol - is passing time in jail by writing a "tell-all" book about the legendary musician.
An insider said: "Dr Murray spends most of his days writing what he is telling friends will be a tell-all book about what really happened in the final days of Michael Jackson's life.
"Murray believes that the public will want to hear about the time he spent with Michael.
"Conrad says that Michael confided his inner-most secrets about his true feelings about his family, the child molestation trial and his three children. Murray contends that Michael's kids viewed him as a family member and loved him."