Leicester have been denied permission to speak to MK Dons boss Paul Ince about the vacant managerial position at the Walkers Stadium.
Foxes chairman Milan Mandaric made an official approach to Dons owner Pete Winkelman last week with regards to his promising young manager succeeding Ian Holloway, who left the club following relegation last season.
A statement release by the Dons read: "Following discussions between the chairman and Paul Ince, it has been decided that Paul will not be pursuing the opportunity at Leicester City.
"Given Paul's success in his emerging managerial career, it can come as no surprise that speculation continues to see his name linked with a number of managerial vacancies.
"In spite of this, as we look forward to the forthcoming League One season, the club remains committed to keeping the hottest young manager in English football at stadiummk."
Mandaric, who has begun interviews for the post and hopes to make an appointment at the weekend, must look elsewhere for his sixth manager since his £25million-plus takeover at the Walkers Stadium in February 2007.