The Portuguese manager was given the chance to increase his salary significantly.
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However, Silva is enjoying his time managing in the Premier League and does not want to leave.
Per the BBC, he did hold talks with Al-Ittihad figures, but chose not to pursue the matter.
Former AC Milan manager Stefano Pioli is now their prime candidate for the job.
Their last manager, Argentine coach Marcelo Gallardo, was sacked after a poor season.