Andre Villas-Boas has reportedly told friends that he is resigned to missing out on the Liverpool manager's job, despite showing an interest in taking the role.
The 34-year-old former Chelsea boss had been installed as the favourite to succeed Kenny Dalglish at Anfield, following the sacking of the latter almost two weeks ago.
However, Villas-Boas saw his odds lengthened late last week after it emerged Wigan's Roberto Martinez had met with Liverpool owners Fenway Sports Group to discuss becoming the club's next manager.
And now, according to the Daily Star, Villas-Boas has admitted privately that he does not expect to become the new Liverpool boss, and will now look for another club.
"He really wanted it – so he’s very disappointed. But he will now look to find another club."
Villas-Boas was the most coveted young manager in Europe only 12 months ago, with his success at Porto leading to a move to Chelsea last June.
However, his reign at Stamford Bridge lasted only eight months, and Chelsea went on to win the FA Cup and Champions League after he was sacked by Roman Abramovich.
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