Sven-Goran Eriksson has turned down an approach from 1860 Munich to become part of the club's coaching staff.
The former England manager was first linked with a move to the Bundesliga II side last November when he accepted an invitation to attend one of their matches by club investor Hasan Ismaik.
Reiner Maurer was sacked as 1860 Munich's coach shortly after Eriksson's visit, leading to speculation that the Swede was going to replace him.
Instead, Alexander Schmidt was appointed, although this week it was reported that Eriksson was set to join their coaching team.
However, Eriksson said in a statement on Friday: "A bit of time has passed since my first contact with the club in November and we all know how quick-moving the professional football world is.
"Therefore, I would like to ask everybody involved to respect my decision. I wish my friend Hasan Ismaik and 1860 Munich lots of success in the future."
1860 Munich's general manager Robert Schafer had flown out to London earlier this week to discuss terms with Eriksson, whose appointment appeared imminent.
"We spoke at length and in depth about the club and the Bundesliga II," said Schafer. "We had also considered how we could integrate the current coaching staff into his new backroom team."
Information from the Press Association was used in this report