Gary O'Neil has withdrawn from the process to become the new Wolves head coach after holding talks with his former club.
Sky Sports News understands O'Neil held positive conversations with Wolves but felt the job was not right for him at this time.
O'Neil is one of a number of options Wolves had been exploring and they will continue their search for a replacement for Vitor Pereira, who was sacked on Sunday.
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It is thought O'Neil wants to return to management once the right opportunity presents itself.
The 42-year-old spent just over 14 months in charge of Wolves before being sacked in December 2024, with Pereira appointed as his successor.
O'Neil led the Molineux side to 14th in the Premier League and the FA Cup quarter-finals in his first season but left after a poor start to his second campaign.
Rob Edwards is another candidate being explored by the club. The former Wolves defender has helped Middlesbrough to second in the Championship this season, and guided Luton into the Premier League in 2023.
Wolves parted company with Pereira following their 10-game winless start to the Premier League season. They lost 3-0 to Fulham on Saturday.
The loss followed a 4-3 defeat to Chelsea in the Carabao Cup fourth round on Wednesday and left the Midlands club with only two points from their first 10 Premier League games, eight points from safety. No club has ever survived with two or fewer points at this stage of a Premier League season.
Pereira's sacking came only 45 days after he signed a new three-year contract at Wolves despite them being bottom at the time, having lost their first four league games.
Wolves are the only winless side in England's top four division.
- How Wolves unravelled under Pereira
 
Edwards: My full focus remains on Middlesbrough
Edwards, who was appointed Boro boss in June following the sacking of Michael Carrick, was asked about links to the Wolves job but refused to be drawn on "speculation" - saying he heard about the links from his daughter.
"You know my links to the club [Wolves]," Edwards said. "But my full focus is on this job here, which is a brilliant job, and trying to turn things around from the weekend in a really big game against Leicester.
"Speculation is hard for me to comment about. We've done a decent job so far.
"It's all speculation anyway. I never get drawn on stuff that's all hypothetical and I don't want to get drawn on that.
"I love being Middlesbrough manager and that's what I want to think about.
"All I can say is I've not given it a single thought because my focus is just on this. It's all the stuff that my daughter was telling me about."
(c) Sky Sports 2025: Wolves next head coach: Gary O'Neil withdraws from race after holding talks with former club

                                        
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