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Eddie Howe has turned down the opportunity to manage Southampton, Bournemouth chairman Eddie Mitchell has revealed to Sky Sports News.
The Saints are in the market for a new manager after cutting ties with Alan Pardew at the end of August.
Scunthorpe boss Nigel Adkins has led the running for the vacant post, with talks having already been held with the Iron coach.
However, a compensation package has proved to be a sticking point and the St Mary's post remains up for grabs.
With that deal having stalled, Southampton have instead turned their attention to Howe, who has worked wonders at Bournemouth during his two years at the helm.
He helped guide the club to promotion out of League Two last season, despite working under a transfer embargo.
His credentials were not lost on the Cherries' South Coast rivals, but Howe has opted against taking on a fresh challenge with the Saints.
Mitchell told Sky Sports News: "Southampton politely approached me and asked if they could speak to Eddie. I gave Eddie permission to speak to them and he went for an interview. This morning (Thursday) he was offered the job, which he declined.
"We are very pleased that Eddie has decided to stay at Bournemouth. Personally I am very pleased, and it's a great achievement for the club to hold on to such a good manager."
Mitchell is convinced that the matter can now be laid to rest, with it unlikely that Southampton will make a second approach for Howe.
"Eddie has made his mind up, he's staying with the club," he added.
"We're very pleased about that and whether they come back or not, I think Eddie is staying at Bournemouth."
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It's been another dramatic week in the Football League.
skysports.com is going to get inside the minds of the players this season.
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Team news ahead of the New Year's Day clash between Crawley and Colchester at Broadfield Stadium.
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Team news ahead of the New Year's Day clash between Scunthorpe and Oldham at Glanford Park.