Nigel Clough will remain as Burton manager after talks collapsed with Nottingham Forest.
Press Association Sport understands Clough, who made more than 300 appearances for the Reds over two spells as a player, was concerned about job stability under current owner and chairman Fawaz Al Hasawi.
Other reports say the Kuwaiti businessman, who is looking for his eighth permanent manager since his 2012 takeover at the City Ground after sacking Philippe Montanier this month, felt Clough had too many demands as regards backroom staff and potential signings.
Clough had an agreement with Burton that should Forest come calling then he would be allowed to speak with them but after doing so the 50-year-old feels staying at Burton is "the right thing to do."
He said: "Having started this historic season in the Championship it is only right that we should stay and continue the job of trying to achieve the miracle of keeping Burton Albion in the Championship. Staying is the right thing to do."
Forest approached Burton for permission to speak with Clough on Thursday and he met with chairman Ben Robinson the following day to discuss the approach, when it was decided that he could hold talks with Forest following Burton's Championship game at QPR.
However, those discussions have broken down and Clough will not be following in the footsteps of his legendary father Brian, who won back-to-back European Cups and a league title with Forest.
Robinson said: "We are delighted that Nigel Clough has decided to continue the excellent job he has done at the club since rejoining us in December 2015.
"At that time we did agree that if Nottingham Forest made an approach for him, due to his long association with the club, that we would allow both parties to talk.
"When an approach was made we gave Nigel the opportunity to talk to Nottingham Forest but now we are happy to report that he will be staying at the Pirelli Stadium.
"Nigel and his backroom team have been fully focused on the job of keeping Burton Albion in the Championship. I have always said that that job was as difficult as a featherweight taking on a super heavyweight but I know Nigel, his backroom team and the players will give everything to keep Burton Albion in the Championship."
It is another blow for Al Hasawi who, on the back of a collapsed takeover by an American consortium led by John Jay Moores, has struggled in his search for a replacement for Montanier.
Gary Rowett, Oscar Garcia, Paul Heckingbottom and Nigel Pearson have all distanced themselves from the job, having been targeted as potential appointments.
Al Hasawi must now turn his attention to other targets and while he does so, Gary Brazil, Jack Lester and Rob Page will continue in caretaker charge.
Forest are five points above the relegation zone in the Championship and host bottom-of-the-table Rotherham on Tuesday night.