Hi all,

i need to write a regret letter to a person who applied to our company. unfortunately our immigration department has not approved his application. i do want to make the letter sound nice so that we can still keep him as a valuble client.

Nasty one!

You need to start with the fact that his application has been turned down by Immigration. If possible [and reasonable] tell him the reason for the rejection.

Then go on to say that your company still value him and hope that you will be able to continue to work with him, even if it is not in the same country.
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en, that's soulds good
My suggestion is that you start with your standard regrets letter and include that the candidate was not selected due to failure to meet employment requirements for the position. (ie- Immigration status) If the individual is a candidate you would consider for future positions encourage them to re apply in the future.