The Egypt Football Federation has decided to remove ex-Ghana coach Milovan Rajevac from the list of coaches to lead the Pharoahs due to his huge financial demands.
The Serb was highly rated to succeed veteran Hassan Shehata who quit after the three-time defending champions failed to qualify for the 2012 Nations Cup finals.
Rajevac was in Cairo last week and held discussions with the Egyptian FA.
Several Egyptian media claimed the former Qatar coach has been chosen to lead the national team.
The EFA President Samir Zaher told Egyptian website Korabia Sports: "Rajevac was the very prominent to lead the national team and we have had several discussions with him but the football Union is unable to meet his huge financial and material demands."
"The Football Union has therefore postponed indefinitely the appointment of a new trainer for the Pharoahs as we continue to hold talks with the other shortlisted managers," he added.
The EFA has shortlisted three coaches namely Serbian Zoran Dordeevic, former US coach Bob Bradley and Colombian Francisco Maturana
Rajevac was sacked by Qatari last month after a disappointing spell with the 2022 Fifa World Cup hosts.