Bayern Munich have turned Arsene Wenger away from taking over at the club after talks broke down, according to BILD.
The Frenchman had been the bookies’ favourite to take the reigns after Niko Kovac was axed this week.
It came after the ex-Arsenal boss was made the Bavarian club’s top target after Ralf Rangnick turned them down.
However, after this latest development it remains unclear where the Bundesliga champions will go next.
There has been talk of Jose Mourinho taking over while Massimiliano Allegri is also on the shortlist.
Enquiries were made over Thomas Tuchel at Paris St-Germain, who was a previous target before the club opted to go for Kovac.
The Croatian was sacked on Monday after witnessing a 5-1 thrashing at the hands of his former side Eintracht Frankfurt.
Wenger had been earmarked as a safe pair of hands to deal with a particularly powerful dressing room.
However, BILD reported that a meeting between Wenger and Bayern chief Karl-Heinz Rummenigge ended with the latter ruling him out of for the job.
Earlier this week, the 70-year-old had hinted that he was interested in taking over at the European giants.
“I never refuse to talk to Bayern Munich because I know these people who lead the club for 30 years.
“I was nearly going to Bayern a long, long time ago. At the moment, that is all I can say.
“At the moment, I haven’t talked to them at all.
“We have not talked to each other and I don’t know (if we will).”