Hull City say they have been "unable to reach a mutually agreeable position" with Pedro Martins over becoming head coach and have cancelled negotiations.
The Portuguese has been in talks with the Championship club all week and sat with owner Acun Ilicali for their home win over Wigan on Wednesday.
Hull sacked Shota Arveladze ahead of their 2-0 defeat by Luton last Friday.
"Pedro is a great coach but we didn't feel we were able to meet his demands," Ilicali told the club website.
"We have been inundated with interest from high-calibre coaches around the world and we will continue to consider all of our options until we find the correct candidate to lead this great club forward
"This is a very important decision for us and not something we want to rush."
Former Olympiakos boss Martins, 52, has also been linked with the managerial vacancy at Premier League side Wolves.
Illicali confirmed that caretaker Andy Dawson will remain in charge until a successor is appointed, adding "we are more than happy with the work he and his team have done in the last week".
The Tigers, who are 17th in the Championship, travel to Huddersfield Town on Sunday.