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The phrase "thanks but" is correct and usable in written English.
It is typically used to express gratitude while also indicating a refusal or disagreement with a subsequent statement or offer. Example: "Thanks but I have to decline your invitation to the party."
Exact(57)
So thanks, but no thanks.
Texas said thanks but no thanks.
He said, gaily, thanks but no.
I said thanks but no thanks.
We told him thanks, but we couldn't".
"No, thanks, but I do appreciate your efforts.
Mr. Shumlin, too, said thanks but no thanks.
Orser, Kim's coach, wrote back and said thanks, but no.
But Ms. Morse invariably says thanks, but no thanks.
"For my part, thanks but no thanks, last.fm.fm
To that, at least — thanks, but no thanks.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com