Ralf Rangnick rejected an approach from Chelsea.
The former RB Leipzig and Hoffenheim coach has been available for the past 18 months.
Sky Sports says Rangnick was offered an interim role by Chelsea but turned it down.
Thomas Tuchel is now in line to replace Frank Lampard, who was sacked today.
The former Borussia Dortmund coach is available after leaving Paris Saint-Germain in December.