(CNN) -- Martin Jol has turned down the chance to join English Premier League club Fulham after confirming on Thursday he will be staying as coach of Dutch giants Ajax.
Fulham wanted the 54-year-old to replace former coach Roy Hodgson, who joined Liverpool earlier in July, but admitted failure when a release clause in Jol's contract was proved to be invalid.
Jol, who spent three years as manager with English side Tottenham Hotspur, has now announced he will be staying with the four-time European champions.
"Ajax told me they did not want to let me go and I don't think I can bring myself to leave Ajax at this time," he told the club's official website.
"I came here last summer to be successful, to build a good team and to have fun, and those three things are what I am interested in achieving next season.
"I am pleased that this hectic few days is over. We are all going to do our best to get the team to the desired level."
Jol was rumored to be close to completing his switch after agreeing personal terms with Fulham chief executive Alistair Mackintosh during talks in Amsterdam.
But confusion now surrounds the issue of a release clause in the Dutchman's contract with Ajax.
"On Thursday morning, following talks with Ajax, the club can confirm that it has ceased negotiations for the release of Martin Jol from his contract with the Dutch club," a statement read on Fulham's official website.
"Although Fulham had agreed personal terms with Martin Jol, Ajax were not willing to allow him to leave under any circumstances, and have held him to the terms of the contract he signed last summer.
"When Fulham commenced negotiations with Martin Jol, the club was informed that an exit clause existed in his contract with Ajax.
"Subsequent negotiations revealed that the clause was no longer valid and Ajax's position remained steadfast in their desire to keep their manager, therefore dialogue between the two clubs has now ended."
Last season Jol won the Dutch domestic cup with Ajax and guided the team to second place in the league, one point behind winners FC Twente.
But Jol reportedly became frustrated at the club's financial difficulties and the prospect of selling star striker Luis Suarez, who had a successful World Cup with Uruguay. Key players Marko Pantelic and Dennis Rommedahl have already left the club.
Fulham must now restart their search for a new boss. Ex-England manager Sven-Goran Eriksson has been linked with the job as has Mark Hughes, who was sacked by Manchester City in December 2009.