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