The 32-year-old last wore the red rose during the World Cup quarter-final defeat to France in October, scoring a try in the 19-12 loss.
The fall-out from England's poor on-field displays and off-field controversies in New Zealand saw Martin Johnson exit as boss and Stuart Lancaster take the reins.
The former Leeds and Saxons coach has opted to give youth its head, and Cueto missed out on selection for the RBS 6 Nations and the summer tour of South Africa.
And the 55-cap three-quarter, who has scored 20 tries for England, acknowledges he may not get another chance to represent his country.
"I'm still available but I understand the situation, I'm slipping out gracefully," he told BBC Radio Manchester.
"You always hold a little light but you've got to be realistic. I know I'm not going to play for England again."
He continued: "I'm not just going to announce my retirement because I know that. I never wanted to officially announce that I was retiring. It's not the sort of thing that I wanted to do.
"I'd always say I'm available but it's not going to happen now. I'm just going to look forward to working hard and playing well for Sale in my last few years."
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