Gabriel Calderon, Bruno Metsu and Manuel Jose are the three candidates in the mix for the top job at the Tehran giants who endured a dismal 2011-12 domestic campaign
The Turkish coach, who joined Persepolis on a 18-month deal in December, informed Ruyanian of his decision on Friday.
Denizli is understood to have resided in his native Turkey for the past month due to personal problems, while there has been links with him taking over at Besiktas.
Meanwhile, the race to become Persepolis' new coach appears to be between three candidates with Bruno Metsu and Gabriel Calderon leading the way according to Goal.com sources, while Manuel Jose is reportedly also a possibility.
“We didn’t reach an agreement with Denizli. We have three options, and one of them will be appointed as Persepolis coach by Sunday,” Ruyanian told the Tehran Times.
Former Senegal national team coach Metsu travelled to Tehran this week for several meetings with Ruyanian, while the general manager also made the trip to Istanbul to meet with Calderon too.
Nine-time Iranian champions Persepolis finished the 2011-12 Iranian Pro League season all the way down in 12th and bowed out of the 2012 AFC Champions League in the Round of 16.