The 46-year-old had been in talks with Tottenham over the past few weeks and was the leading candidate for the job.
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According to Sky Sports, the former Dortmund Sporing Director has decided to pull out of talks as an agreement can’t be reached.
Manager Roberto De Zerbi is expected to have a large influence on Tottenham’s summer transfer plans as well as who will be appointed as Sporting Director.
Ex-Crystal Palace director, Dougie Freedman, currently with Saudi club Al-Diriyah has previously been linked with the role.