Lothar Matthaus has rejected the chance to take over at Aston Villa to see out his contract with Rapid Vienna.
Matthaus was approached by an agent about the Villa Park vacancy and spoke of his desire to manage an English club.
But Rapid say that the German legend has now pledged his future to the them.
A spokesman said: "Lothar Matthaus will not be going to Aston Villa.
"It's true that he had an approach from an agent but he has a contract with us and he will fulfill that.
"We are struggling in the league at the moment but we have brought in five new players and we are confident of getting better results after the winter break.
"Our season starts again on February 24 and we know we need to be doing better than we are. With the new players and our manager's future settled we think we'll see a quick improvement."
Matthaus, who won 150 caps for Germany, has not done as well as expected since taking over at Rapid.
His side are currently second-bottom of the Austrian table with 20 points from 21 matches, 28 points behind leaders Tirol.