Edy Reja will reportedly not take the Albania job after Christian Panucci was fired, as Gigi De Canio is the new favourite.
According to Sportitalia, the negotiations to bring former Atalanta, Napoli and Lazio Coach Reja to Albania ground to a halt on Sunday.
He had been in the stands to watch the 2-0 home defeat to Turkey, the opening Euro 2020 qualifier that proved the final straw for Panucci.
However, talks hit problems over both the salary and the length of the contract.
The Albanian Football Federation is nonetheless turning towards another Italian, as De Canio is the main candidate now.
The 61-year-old tactician was sacked by Ternana in January, but his previous clubs include Napoli, Udinese, Genoa and QPR.