Ralf Rangnick released a statement saying that he is no longer in running for Schalke's sporting director role.
"The overwhelmingly positive reactions from members of the Konigsblauen community have influenced me and confirmed my feelings for this very special club.
"I would have loved to have been involved in helping Schalke on its difficult road back to its former strength.
"Unfortunately, due to the numerous uncertainties within the club at the moment, I do not see myself being able to take on sporting responsibility at S04 at the moment," wrote Rangnick.
Schalke said they were surprised by Rangnick's announcement.
Rangnick had declared his interest in pursuing the German national team manager role.