The World Cup winner was linked with taking over at the Championship club.
The Italian was in England two weeks ago to discuss a potential deal that would see the World Cup winning-defender succeed Steve Evans at Elland Road, the Mail claims, but a dispute regarding money has been mooted as the reason for the talks coming to nothing.
The Mail does report however, that the news will not save Evans from the sack at the end of the season as club president Massimo Cellino is still intent on appointing a foreign coach.
Though the Whites' recent results before this weekend should have surely earned Evans a full pre-season for him to help construct the team that he believes can make a charge for promotion next year, his cause of convincing an owner that has already parted company with five head coaches during his brief time at the helm would not have been helped at all by Saturday's result.
Already-relegated Charlton left Yorkshire with all three points to end Leeds' four-match unbeaten run, and left Evans perhaps needing to pull off something incredible on the last day of the campaign to prove to the president that he does deserve to stay.