Danny Rohl has told Rangers he does not wish to continue in the process to become the club's new head coach.
Sky Sports News revealed on Wednesday that Kevin Muscat was emerging as the frontrunner for the job.
Rohl had held discussions with the Ibrox hierarchy last week and impressed - but is no longer in the race.
The 36-year-old had also been sounded out by Rangers in the summer before Russell Martin was appointed.
He led Sheffield Wednesday to a 12th-placed finish in the Sky Bet Championship in his only full season as a manager before leaving the troubled Yorkshire club in July.
Previously an assistant manager at RB Leipzig, Bayern Munich and with the Germany national team, he had steered Wednesday out of relegation trouble the previous campaign.
Rangers remain in discussions wit