Leicester City have been denied permission to talk to Paul Ince about the vacant managerial position at the Walkers Stadium.
Mandaric had Ince in mind as the successor to Ian Holloway, who left the club following relegation from the Championship last season.
However, a statement released by MK Dons read: "Following discussions between the chairman and Paul Ince, it has been decided that Paul will not be pursuing the opportunity at Leicester City.
"Given Paul's success in his emerging managerial career, it can come as no surprise that speculation continues to see his name linked with a number of managerial vacancies.
"In spite of this, as we look forward to the forthcoming League One season, the club remains committed to keeping the hottest young manager in English football."