Hamburg sporting director Frank Arnesen has indicated talks with Huub Stevens over the club s vacant manager position have broken down.
The Dutch tactician had been strongly linked with a return to Hamburg who he coached in 2007 and 2008 following the sacking of Michael Oenning on Monday.
Hamburg and Stevens had been in discussions over the weekend, but it is now believed the Bundesliga side have put an end to negotiations after learning the 57-year-old coach was also in talks with Schalke.
The coach we want needs to be 100 percent convinced of our concept, Arnesen told Bild.
Schalke are also in the market for a new coach after Ralf Rangnick resigned on Thursday due to health problems.
The latest development is likely to fuel speculation about Hamburg setting their sights on former Netherlands and Ajax boss Marco van Basten.
Van Basten s agent Perry Overeem admitted on Tuesday that his 46-year-old client, who has been without a job for more than two years, could be tempted by an offer from the Bundesliga side.
Hamburg, who beat Stuttgart on Friday to secure their first victory of the season, are currently bottom in the league, with four points from seven games.
