A fed-up Julian Nagelsmann ended talks with Chelsea after learning they were speaking with other candidates.
The sacked Bayern Munich coach met with Chelsea officials last week and was keen on the job.
The Daily Mail says the German is understood to have been under the impression that the job was his and that talks were a formality.
However after several meetings, Nagelsmann saw press reports of Chelsea also being in talks with Mauricio Pochettino.
And with his concern growing, he chose to withdraw from the running on Friday.
Fellow free agent Pochettino is now favourite for the post.