Blackpool chairman Karl Oyston has revealed that Billy Davies has "decided to follow another opportunity" rather than take up the vacant post at Bloomfield Road, opening the door for a possible return to Nottingham Forest.
Davies, who was sacked by Forest in July 2011, is held in high regard by the current owners at the City Ground and they are believed to be mulling over appointing the Scot as Alex McLeish's successor, after he parted ways with the club earlier in the week.
Blackpool also find themselves managerless following Michael Appleton's departure for Blackburn Rovers last month. And Oyston has confirmed that he made an approach to acquire Davies' services, only to be knocked back for another offer - which could well be Forest.
Oyston released a statement on Blackpool's official website, saying: "I would like to place on record that the club met and discussed the manager's position with Billy Davies on Monday evening. Contrary to speculation, I can confirm that the meeting concluded with both parties agreeing to speak again on Tuesday. I spoke with Billy on two occasions yesterday and he has decided to follow another opportunity, which is a decision we fully appreciate and understand."
Oyston also went on to reveal that he offered the Blackpool job to Sean O'Driscoll, who opted to join Bristol City last month instead.
He said: "It has been well documented that we have approached a number of people regarding our managerial vacancy, in order to conduct preliminary discussions and ascertain interest from either party. We will continue with this process and we will continue to do so in the correct manner. However, we have only offered the position to one person and, unfortunately, that person decided to accept a position at Bristol City."
Oyston added that caretaker boss Steve Thompson will continue to remain in temporary charge while the club carry out their search for a new manager.