The Sevilla boss will reportedly stay with the Europa League champions instead of joining West Ham.
Indeed, the Spaniard turned both West Ham and Napoli down to extend his current contract with Sevilla until 2017.
It is unclear exactly where that leaves the Hammers in their search for a new manager - but it could be back to square one for owners David Gold and David Sullivan.
Unai Emery heard from Napoli and West Ham, amongst others, but decided to stay put. Has renewed his contract till 2017— Guillem Balague (@GuillemBalague) June 5, 2015
According to sports betting website Oddschecker, Emery has dropped to fourth-favourite in the running to replace Sam Allardyce at Upton Park.
Slaven Bilic remains the favourite to take over at West Ham but Emery had been a widely reported name this week, with the club now looking as though they most certainly made contact with him.
The longer it takes to find a new manager, of course, the more difficult it will be for that manager to get things into place in east London.
At the same time, however, the West Ham owners will no doubt be keen to avoid appointing the wrong man for the job. It looks as though Emery isn't the right man...