Sven-Goran Eriksson will not continue his work as Ivory Coast coach after being unable to come to a financial agreement.
Eriksson replaced Vahid Halilhodzic in March and led Ivory Coast into the World Cup in South Africa, but he was unable to guide the team beyond the group stage as Brazil and Portugal progressed.
He had been expected to move on and was linked to the vacancies at Liverpool and Fulham, but he revealed last month that he was considering a four-year deal to remain in charge of the Elephants.
However, Ivory Coast's president of the national teams committee, Sory Diabate, said: "Eriksson will not be the next coach of the Elephants. He was the first choice but the discussions came to nothing after difficulty arose about financial conditions, despite the good will on both sides.
"This is the place to once again thank Eriksson for the outstanding job he has done with the national team during the World Cup that has earned us the result we know."
Diabate rejected suggestions Eriksson had criticised the lack of ambition shown by the Ivorian Football Federation.
"It's not true," he said. "Eriksson called us and renewed his thanks and greetings to the president of FIF and members of the executive committee. He remains convinced that the team of Ivory Coast has huge potential and a bright future.
"He told us that his deep and sincere desire was to continue with this team. However, he regretted that it was not possible. He said he had never granted an interview to anyone about our discussions and denied the federation lacks ambition. Instead, he praised the federation and although he has left, he remains our friend, just like we remain his."
Ivory Coast play Italy in London on August 10 and hope to find a replacement in time for that game.
"The consultations are continuing," Diabate said. "For the moment nothing is yet decided, but I think we will be able to name the coach soon. The executive committee are deciding between two or three candidates, who I cannot reveal. Everything should be finalised before our scheduled departure for London on August 7.''