Ralf Rangnick has turned down the chance to become the new Bayern Munich manager due to 'personal reasons'.
The former Manchester United boss will not replace Thomas Tuchel in the hot seat at the end of the season.
He had confirmed the reports of an offer from the German giants last month but has now made the decision to say no.
Bayern expected Rangnick to accept their proposal and they had reportedly planned an announcement next week.
However, the outcome is not as they expected, meaning they will continue their search for a new manager.
Despite not taking the job, Rangnick has insisted that the decision is not a rejection of Bayern though.
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It was a personal choice from him ahead of the Euro 2024 campaign as he is the manager of the Austrian national team.
“I'm the Austrian team coach with all my heart," he said.
"This is not a rejection of Bayern, but rather a decision for my team and our common goals."
Bayern were said to have been discussing a deal which would have meant Rangnick would leave his post at Austria early.
But according to German outlet BILD, the 65-year-old intends to see out his contract with Austria until it expires in 2026.
Bayern's hunt for a new manager has taken another blow with their third choice in Rangnick now turning them down.
It means they're now onto their fourth option which could be Brighton boss Roberto De Zerbi.
talkSPORT understands that Bayern are admirers of De Zerbi who has also been attracting interest from AC Milan.
However, the Seagulls are currently planning for next season with the Italian and remain confident he will be staying at the club.
Bayern have already seen offers for Julian Nagelsmann and Xabi Alonso rejected with the latter also snubbing a move to Liverpool.
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It was revealed in February that Tuchel would be leaving the club at the end of this campaign, following a tough season in the Bundesliga.
Bayern had their 10-year title-winning streak ended by Alonso's Bayern Leverkusen who are on an incredible unbeaten run.