Stuart Baxter plans to sign a contract extension with Finland and will not be interested in the Sweden job when it becomes available.
Birmingham-born Baxter has managed Finland to third spot in World Cup qualifying Group Four.
The 56-year-old, who lives in Sweden and has managed Swedish sides AIK and Halmstad, only signed a contract extension in January to keep him in charge until after the 2012 European Championships.
But he found himself linked with the Sweden job, after coach Lars Lagerback and his assistant Roland Andersson announced they will step down if they fail to reach the World Cup or after the finals if his side do qualify for South Africa.
Baxter said: "I woke up to find myself seemingly on a three-man shortlist to take over Sweden. The Finnish FA have had to issue a denial. They are already making moves about me signing another contract extension and that is what I want to do.''
Lagerback and Andersson's contracts run until the end of the World Cup, but following Saturday's 1-0 defeat in Denmark, Sweden cannot gain automatic qualification.
And they will only go into November's play-offs from Group One if they defeat Albania in Stockholm on Wednesday and Portugal fail to win at home to Malta.
Lagerback said: "We have decided to quit. I think it's better for the national team to have a fresh start.''