Stephen Larkham will not be joining Edinburgh

Larkham agreed to make the move in May, but the deal was in doubt after the club returned from private hands into the control of Scottish Rugby.

Nic Cartwright, chief executive of Edinburgh, said the deal was off, adding: "Stephen has opted to secure a new playing contract elsewhere.

"Obviously we wish him well with his next move."

The 32-year-old former World Cup winner had said he was looking forward to moving to Edinburgh, amid mounting speculation that the SRU would scrap the transfer.

A summer-long war of words between Edinburgh's franchise holders and the SRU ended last month with an amicable agreement returning the club to the national body.

We are in the market for world-class players and Stephen is certainly in that category Leeds chief executive Gary Hetherington

But the club's coach, Lyn Howells, was dismissed, with SRU head of player development Henry Edwards becoming the team's interim head coach.

And reports suggested that the SRU would be unwilling - or unable - to fund the acquisition of a player widely viewed as a major signing coup.

Larkham was due to join Edinburgh at the end of the World Cup campaign, but Guinness Premiership club Leeds have also expressed an interest in the former World Cup winner.

"We are in the market for world-class players and Stephen is certainly in that category," said Leeds chief executive Gary Hetherington.

"We have been monitoring the situation with Edinburgh and are now in position to make a formal offer."