Everton have been turned down by Watford boss Marco Silva.
The Portuguese had been Everton majority shareholder Farhad Moshiri's No1 choice to succeed Ronald Koeman after his sacking last week.
Silva, 40, would have earned much more on Merseyside but he feels loyalty to Watford, who gave him a job in the summer.
Everton will now offer the job to former England coach Sam Allardyce.
Moshiri is offering Allardyce a deal to the end of the season.