Carlo Ancelotti has reportedly rejected the opportunity to manage the Brazilian national team.
The Italian manager is set to leave Real Madrid at the end of the season, and has been heavily linked with taking charge of the five-time World Cup winners.
According to Marca, Ancelotti travelled to London on Monday and was expected to sign his Brazil contract in the English capital.
He did not put pen to paper, but was still considered likely to formalise his move into international football when he returned to Spain on Tuesday.
However, he has now opted to turn down Brazil’s proposal, and contacted the president of the Brazilian federation, Ednaldo Rodrigues, to inform him of his decision.
Marca’s report claims Ancelotti’s U-turn came after uncertainty emerged over when he could potentially start his role with Brazil.
Carlo Ancelotti has reportedly made a shock U-turn and rejected the chance to manage Brazil
He contacted the president of Brazil’s football federation, Ednaldo Rodrigues (pictured), to inform him of his decision
Ancelotti is now understood to be considering a significant offer to manage in Saudi Arabia
Brazil believed he would be allowed to leave Real in June, but Ancelotti is understood to have told the federation that he would not take up his position until August.
Barring another major change of heart, Ancelotti will now not become Brazil’s next manager, and could still lead Real in this summer’s Club World Cup.
Ancelotti is still set to leave the Spanish giants ahead of next season, and is believed to be considering a huge offer to manage in Saudi Arabia.
The Saudi contract would reportedly see Ancelotti earn €50m net (£42m), which could be difficult for him to turn down.
Meanwhile, Brazil must now look for alternative options after failing to convince Ancelotti to become their new manager.