Nottingham Forest have failed to agree a deal with Charlton Athletic to bring Paul Hart back to the club, reports BBC Sport.
The 58 year old told BBC East Midlands Today that Forest were keen to discuss a technical director role at the City Ground, where he managed from 2001-04.
But the Addicks were thought to want more than £500,000 in compensation for their current academy director.
And the Championship club have said they are not in a position to pay out to replace ex-boss Steve McClaren, who left last week.
The Reds have said they are eager to appoint their new manager before their next fixture, against Coventry City, on Saturday, 15 October.
