Ralf Rangnick is set to turn down the chance to become Everton manager.
Rangnick was in the running for the Blues’ hot seat in 2013 when he lost out to Roberto Martinez but has re-emerged in the hunt for Ronald Koeman’s successor.
The highly-respected coach has managed several Bundesliga sides and is credited with helping RB Leipzig reach the top tier of German football as sporting director.
Toffees’ supremo Farhad Moshiri is understood to have identified the German as his preferred candidate to take Koeman’s place at Goodison Park.
However Rangnick is expected to reject Everton’s planned approach as they seek out a replacement for Koeman, over an entire month since he was deposed.
Leipzig are planning to tie the 59-year-old down to a new contract, with the Red Bull-owned club’s chief executive Oliver Mintzlaff confirming talks are underway.
“We expect to extend the contract ahead of schedule this week,” he told SportBild.
“Ralf Rangnick is the sportive engine of our club and therefore also elementary for our future development.
“It was less about financial or maturity issues, but rather about which direction RB Leipzig continues to take.
“Since we have 100 per cent the same ideas, we want to continue the same: make even more stars out of jewels, stay attractive in all areas of the club and continue to grow organically.”
Everton’s search for a new manager has been dealt a series of setbacks after they failed to convince Watford to part with their highly-rated coach Marco Silva.