In a statement, M&S said: "The board considers that the proposal significantly undervalues the group and its prospects and therefore rejects the proposal.
"Following the appointment of Stuart Rose as chief executive on May 31, the management team is currently in the early stages of re-examining all aspects of its business in order to maximise value creation for its shareholders.
"Marks and Spencer shareholders will retain 100% of this value creation."
Earlier, Green had said that he would not be prepared to table a bid which was not backed by the M&S board.
He said he was prepared to make a cash offer for M&S of between 290 and 310 pence per ordinary share, plus 25% interest in the equity of Revival Acquisitions, the vehicle he launched to manage the bid, in the form of a listed security.