Patrick Vieira is out of the running for the Newcastle manager's job with an alternative appointment expected this week, sources have told ESPN FC.
Vieira, head of the elite development squad at Manchester City, was on a four-man shortlist for the manager's job with Newcastle.
The former Arsenal and France star is highly rated at City and he has been completing his coaching badges as he looks to move into management.
However, Vieira's lack of top-flight managerial experience has counted against him and he is no longer in contention for the role.
Steve McClaren is now the clear has favourite to take over from interim boss John Carver, who guided Newcastle to Premier League safety with a final-day 2-0 win over West Ham.
McClaren is available after being sacked by Derby County last month following the club's failure to reach the Championship playoffs.
The former England boss has been linked with the Newcastle job since Alan Pardew left for Crystal Palace and sources indicate he has turned down the job twice while he was still in charge of Derby.
McClaren is set to be offered the job for a third time with Newcastle expected to make an appointment by Friday.