After being sacked by Leeds recently, Marsch looked liked he would beat the Whites in terms of moving on as he was close to being appointed Southampton manager.
However, it became clear earlier in the week that the deal was off and the negotiations between the parties had hit choppy waters.
It was claimed that Marsch was not convinced with the length of the contract offered by Southampton, only until the end of the season, and the talks broke down.
However, Marsch also felt the time was not right for him to take on the Southampton job and the chances of the deal died down.
Marsch had been sacked by Leeds, who are in a relegation battle, but at Southampton he would have encountered an even worse situation as the Saints are bottom of the table and he would face an even greater task.
The ex-Leeds manager liked certain parts of the Southampton project but it appears now he will not be the next Saints boss.
Marsch also had reservations over some of his backroom staff staying on at Leeds and not accompanying him out of Elland Road.
