Wolves have been turned down by Julen Lopetegui for a second time despite Molineux chief Jeff Shi flying to Spain for talks.
Lopetegui was sacked by Sevilla last week and courted by Wolves after they parted company with Bruno Lage.
Wolves owners Fosun are big admirers of Lopetegui and the Spaniard almost became their first Wolves boss in 2016 after the Chinese group bought the club and sacked Kenny Jackett.
Executive chairman Shi personally flew to Spain to hold talks this week with the 56-year-old after Wolves made him their top target.
Lopetegui is keen to coach in the Premier League but his 92-year-old father is not well which played a part in his decision.
It is the latest rebuff for Wolves by the coach after the Spanish federation approached Lopetegui and he became Spain manager in 2016 instead.
Interim bosses Steve Davis and James Collins are taking training again this week in preparation for the upcoming Nottingham Forest game on Saturday after overseeing the weekend’s 3-0 loss at Chelsea.
Lopetegui's decision could open the door for ex-Olympiakos coach Pedro Martins after he turned down Hull.
Wolves sit 18th in the Premier League having won just one of their nine matches this season, with Lage sacked after the 2-0 loss to West Ham earlier this month.
Lopetegui received a heartfelt send-off from Sevilla fans after his departure last week, having won the Europa League with the club in 2020.
He announced his own sacking following last week's 4-1 defeat to Borussia Dortmund in the Champions League, and had been expected to make the move to Molineux.
