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"declined it" is correct and can be used in written English.
It is used to indicate that a request, invitation, offer, etc. was not accepted or was refused. For example, "The customer offered to pay by credit card, but I declined it."
Exact(59)
As Spain declined, it dragged its Italian realms down with it.
She declined — it was late.
The test is unpleasant, and her mother has declined it.
I declined; it wasn't the way I wanted to go.
He was offered the laureateship in 1757 but declined it.
Amini sent the report to another newspaper, which also declined it.
The latter role had been offered to Copeland, and she had declined it.
He was awarded the Nobel Prize for Literature in 1964, but he declined it.
As such firms' performance declined, it became clear that managers could add little value to them.
I declined: it was late and he was tired, and more than a little depressed.
Burckhardt was later offered a chair at Berlin, but he declined it.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com