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."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
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The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
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The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.