The former Athletic Bilbao manager was expected to fly into Brazil on Wednesday to finalize a deal that would see him succeed interim boss Claudinei Oliveira at the club. Disagreements over the personal terms are believed to have contributed to the breakdown in negotiations, though, with reports suggesting that the club is reluctant to offer anything more than an 18-month contract, while Bielsa was said to be keen on being handed a long-term deal.
Santos released a statement on the club's official website citing creative differences as the reason Bielsa will not be arriving at Estadio Vila Belmiro this summer.
"Santos can announce that negotiations with the Argentine coach Marcelo Bielsa have closed," the statement read. "Both we and the coach failed to reach an agreement on which the direction the club should be going, which will prevent his arrival."
The 57-year-old has spent the last two years with Los Leones, but has left San Mames this summer after the Bilbao hierarchy decided the coach was not deserving of a new deal following a 12th-placed finish in the Liga standings last season.