The pundit confirmed that talks between the pair failed to happen, despite his agent getting in touch.
The 20-year-old missed the Villans' defeat to Watford last weekend, having been forced to train with the under-21s by Villa boss Remi Garde, after he was pictured in a nightclub hours after the Premier League's bottom side were thumped 4-0 by Everton (in the Mirror).
Merson - who battled off-field issues during his career - extended an offer to help Grealish shortly after his demotion, in an attempt to get his career back on track. However, during an interview with Sky Sports, Merson explained that while he had set up a meeting through Grealish's agent, the chat fell through at the eleventh hour.
"His agent rung me Friday and said that he wants to meet you and we'll have a chat. And then yesterday, when I was supposed to meet him, it didn't happen," Merson said.
"I'm not chasing around now, you know, I said I'll talk and that's it. If he wants to talk, he'll talk," he added.
While the former England midfielder - who played at Villa Park between 1998-2002 - hinted that it was down to Grealish that the meeting didn't take place, he did admit that he is still a big fan of the player, and wants to help him for Villa's sake, as much as his.
When asked about whether he would still be willing to help, Merson responded: "Yeah, course, I'm a big fan of his.
"I'd love to help him and help Aston Villa in any way if I'm being honest, I mean, they need help."
"He's not a bad kid. That's the one thing we've got to understand.
"He's just a young kid who needs a bit of advice at the moment."
Despite Merson's support for the youngster, Garde has decided to keep Grealish out of contention for Villa's upcoming game against Southampton, which may send a message to the player that it is time to accept the advice that is available.