Xabi Alonso has confirmed he will stay at Bundesliga leaders Bayer Leverkusen beyond this season rather than switching allegiances to replace Jurgen Klopp or Thomas Tuchel.
The 42-year-old, former Reds midfielder, had been strongly linked with a move to Liverpool after being touted as a potential replacement for their outgoing manager.
Alonso was said to be Liverpool's primary target, with Sporting Lisbon manager Ruben Amorim and Brighton boss Roberto De Zerbi also in the running for the job.
However, Alonso confirmed he will be staying at Bayer Leverkusen during Friday's press conference ahead of their game against Hoffenheim on Saturday afternoon.
The Spanish manager told reporters he felt the speculation over his future could have hindered their chances of claiming the 2023-2024 Bundesliga title.
Xabi Alonso confirms he will stay at Bundesliga leaders Bayer Leverkusen beyond this season rather than replace Jurgen Klopp or Thomas Tuchel
Jurgen Klopp will leave Liverpool in the summer after almost nine years at the helm
He also said the rumours could have undermined his authority with the players as they would have been questioning whether he was staying at the club or going.
Therefore, Alonso wanted to make an official announcement ahead of their final eight Bundesliga fixtures.
Speaking at Friday's press conference, Alonso said: 'There has been a lot of speculation around my future, we have been busy and focused and I wanted the international break to reflect a bit better.
'I had a very good meeting with the decision makers, and I decided to stay at Bayer Leverkusen. I feel this is the right place to develop as a coach. I have to feel it, and right now I feel this is the right place… my job is not over here'.
He went on to add: 'For sure all the decisions needed to be analysed well and I tried to take the right ones. I tried to take them that I feel they come in a natural way and at this moment I felt that this is the best place for me to be, for me to develop as a coach.
'I am a young coach but I have to feel it and right now I feel that this is the right place and I have to thank the management, the club that has been really supportive.'
Alonso went on to speaking about how he felt valued at the German side. He told reporters: 'I feel really respected by all the departments.
'The fans that show great support during this year and last year in difficult moments, I feel that. We have all the reasons to believe and to dream that we can have a really great season, we are really pushing for that.
'A great staff that helps me day by day to work better, to prepare and improve the team.
'The players. For sure the players, they give me so many reasons to keep believing in the team for the commitment, for the desire, fort he hunger to have a great season.'
Alonso finished by saying: 'I want to help them, I want to help the team, I want to help the young players to develop and if I am part of a process I am happy with that.
'Putting all the things together, I have taken this important decision and I am convinced it is the right one, I am happy. I am still young so time will tell but right now I feel like that.'
When asked whether he felt there was room for improvement at Bayer Leverkusen - in terms of his own performance and his squad's performance - Alonso said: 'It is a process.
'The development of the team is being parallel as my development as a manager. This is my first complete season as a manager so I think that I still have a lot of things to prove to myself, to experience.
'Right now I have a situation at the club where I feel really stable, really happy with the team and the club. It comes together that we can work together in many aspects.
'I have shared that with the management and the players as well. We are in a situation that we have to enjoy. There is still two months to go, it's going to be really intense but really demanding but enjoyable hopefully.'
Alonso felt it was important he announced his decision publicly ahead of Leverkusen's final eight Bundesliga games. He felt doubts may have undermined his authority with the squad
Alonso felt it was important he announced his decision publicly ahead of Leverkusen's final eight Bundesliga games. He felt doubts about his future may have undermined his authority with the squad.
Speaking about the run-in, Alonso said: 'We need to give our best and for that it was good that the last week was my deadline and I had to make that decision. From now on all the cards are on the table and we go full gas for the big calls we have ahead of us. Lets see how far we can reach but our wish is clear.'
He continued: 'I have thought about the decision because important decisions you need to reflect well and to know. Once I had taken the decision it was important to share with everyone.
'I need to give them back the respect that they have shown me, I am grateful as well to these people that they believe. The fans, my staff, the players. So many people that come with me and that's important that I give them back what they have given me, that's a sign of respect, of appreciation. So far I feel that way.'
Alonso's decision to stay at Leverkusen leaves Sporting Lisbon manager Amorim as the leading candidate to take over at Liverpool.
Alonso went on to speaking about how he felt valued at the German side and thanked his staff
As a result, the mystery over who will take over at Liverpool next season continues
Amorim, 39, is expected to be given an interview with the Premier League giants after he scored well on Liverpool's data tests.
Bayern Munich had also registered an recruiting Alonso, perhaps a tactic to unsettle Leverkusen's title tilt this season.
However, Bayern Munich's club president Uli Hoeness said it would be 'probably impossible' to bring the Spaniard to Munich this year.
Alonso, who was seen as Liverpool's dream target, has overseen a revolution at Bayer Leverkusen since joining in October 2022.
When he signed up for the job, they were in the relegation zone but he managed to steer them into the top six.
This campaign, they are 10 points clear of Bayern Munich at the top of the Bundesliga, unbeaten all season, and into the last eight of the Europa League for a second year running.
It has been a historic season, with Leverkusen on course to lift their first Bundesliga title barring an almighty breakdown, and they have only conceded 18 goals in the process.
Alonso was Liverpool's primary target to replace Klopp, but they are now turning their attention to Sporting CP boss Ruben Amorim (pictured above)
Brighton boss Roberto De Zerbi sits behind leading candidate Amorim for the job
After cutting his teeth for three seasons with Real Sociedad B, he has re-energised the Rhine club and won 50 of his 75 games in charge, only losing 10.
Meanwhile, Bayern are facing the prospect of their first season without winning a trophy since 2011-12 - following 11 consecutive title wins - and have thus deemed Tuchel surplus to requirements.
Liverpool's other target, De Zerbi, sits at the top end of their shortlist having guided Brighton to sixth in the Premier League last season and got them to the last 16 of the Europa League in their maiden continental venture.
The Seagulls will visit Anfield on Sunday.