Mowbray was one of the front runners to succeed Mick McCarthy at Ipswich following McCarthy's departure from Portman Road last month.
Mowbray is well thought of at Ipswich after ending his playing career there before starting his coaching career at the club and having a brief spell as interim manager following George Burley's sacking in 2002.
Ipswich are understood to have sounded out Mowbray about returning to the club for next season, but the 54-year-old has informed them he does not want to be considered for the role as he is happy at Blackburn Rovers.
Mowbray has guided Blackburn back to the Championship this season after winning promotion from League One at the first time of asking and they are battling it out with Wigan for the title on the final day of the season this weekend.
Mowbray is already planning for next season back in the Championship with Blackburn and is set to meet with the club's owners later this month to discuss their transfer budget.
Ipswich are hoping to name their new manager at some point this month, but they will have to look elsewhere with Mowbray staying at Ewood Park.
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