Former Ipswich boss Burley was set to be unveiled as successor to Steve Cotterill on Thursday.

But Stoke chairman Gunnar Gislason said in a statement that Burley had suddenly decided not to take the job.

Burley could now be in the running to take over at Sheffield Wednesday following Terry Yorath's departure.

"After lengthy talks, and what we considered successful negotiations, George Burley has had a change of heart," said Gislason.

"We were given every indication that he would be willing to sign a contract, all terms and conditions had been covered, there was no area of dispute and he was keen to attend our home game against Watford on Wednesday evening.

"However, he informed us this morning that he would not be accepting the offer of the job."

Burley, who was sacked by Ipswich earlier this month, held talks with First Division Stoke on Wednesday.

And he watched their 2-1 defeat by Watford from the front row of the directors' box at the Britannia Stadium.

"I had an open mind last night and this morning when I spoke with the chairman but it had to be right for both parties and it wasn't," said Burley.

"With Steve Cotterill leaving Stoke, the club wanted someone long-term and I wasn't able to commit to that."

Cotterill quit as Stoke boss on 10 October to take over as Howard Wilkinson's assistant at Sunderland.

Former Middlesbrough manager Bryan Robson, ex-Gillingham boss Tony Pulis and Adrian Heath, who began his playing career at Stoke, have also been linked with the post.

Gislason added: "We recognise the fact that it is for the good of the club that an appointment is made as soon as is practically possible.

"As ever we remain determined to ensure that the appointment is the right one. As soon as we are in a position to make a definite announcement we will do so."