Sanchez Flores was strongly linked with the vacant Stoke job after the dismissal of Mark Hughes.
However, the former Watford boss has declared his intention to remain in Spain.
During his press conference on Saturday, he said: “I am and I will be the coach of Espanyol.
"The fact is that I am here.”
On Wednesday, the Potters sent a delegation to Barcelona to meet Flores in the hope of securing a deal.
The 52-year-old was offered the opportunity to take over from Hughes, who was sacked following Stoke’s shock 2-1 defeat to Coventry City in the FA Cup.