Manchester United great Roy Keane has turned down the Sunderland manager's job.
Sunderland's hierarchy offered Keane the role but he has decided against a return to the Stadium of Light, 15 years after leading the club to the Championship title, says the Daily Mail.
Sources have suggested that contractual issues played a part in the collapse of the deal, which had seemed likely to happen over the weekend.
It means attention will now turn to other candidates, including Grant McCann and Alex Neil. Second interviews have been taking place this week.
Sunderland have lost twice since sacking Lee Johnson, slipping to fourth in the League One table.