Experienced head coach Marcelo Bielsa has turned down the opportunity to replace Leonardo at Inter ahead of the 2011-12 campaign, Sky Sport 24 reports.
After initially denying the rumours linking Bielsa with the club, Inter president Massimo Moratti admitted on Wednesday that there had been contact between the Coppa Italia winners and the Argentine tactician.
Nevertheless, the 2010 Champions League winners have been unable to convince Bielsa to move to Italy's fashion capital as he has rejected Inter's offer to take the reins at San Siro.
Inter are reportedly not the only ones to get turned down by Bielsa though as the Italians are the third European club to be snubbed in the last month. The 55-year-old had previously been linked with Roma and Sevilla.
It's yet to be determined what Bielsa's refusal means for the future of current head coach Leonardo. The Brazilian is reportedly close to taking over at Ligue 1 side Paris Saint-Germain as the club's sporting director, but it is doubtful that Inter will release Leonardo until they have found a suitable replacement.