Manchester United were rejected by Carlo Ancelotti earlier this season as they looked to replace Louis van Gaal.
It has been reported that the Italian coach said no to United after chief executive Ed Woodward made an approach in November.
The Daily Mail have insisted that the former Real Madrid man rebuffed Woodward’s advances as he was already in the middle of negotiations with Bayern Munich.
The German champions confirmed Ancelotti will take over as their new manager at the end of the season last month.
However, this news further throws Van Gaal's long-term future into doubt, as it appears the owners are already searching for alternatives.
It's reported that contact with Ancelotti was made before United were eliminated from the Champions League and embarked on their seven-game run without a win.
Despite this, the same paper understands that United would not challenge rivals Manchester City for Pep Guardiola's signature.
The Spaniard confirmed earlier this week that he will be heading for the Premier League next season.
“The reason I have not extended my contract [with Bayern Munich] is simple. I want to manage in the Premier League,” he said.
“I want to experience the atmosphere in England. I am 44 and it is the right time to go there. I need a new challenge.
“There are offers, but I haven't signed anything yet. When I have a new club, the club will communicate that. At the moment, I can’t say anything else because nothing is fixed.”