Steve Cooper is now the leading contender to become Leicester's new manager.
The 44-year-old has been out of work since being sacked by Nottingham Forest in December but has held further talks with their East Midlands rivals.
Former Chelsea and Brighton manager Graham Potter and West Brom boss Carlos Corberan have also been considered by the Foxes.
At the start of the week Potter appeared to be the frontrunner in a fluid situation, but Cooper is now seen as the prime candidate.
Leicester had previously tried to tempt Potter to the King Power Stadium last April before their relegation from the Premier League, but he was not ready to return to management just days after being sacked by Chelsea having spent less than seven months in charge.