Ian McCall has confirmed he held talks with Falkirk over their manager's post, but has opted to stay at Ayr United.
Championship bottom club Falkirk are seeking a replacement for Paul Hartley, who was sacked on Tuesday.
Former Ross County manager Jim McIntyre rejected an offer to take charge and, following discussions, former Bairns boss McCall has done likewise.
"I had a very brief meeting with Falkirk and made the decision to stay at Ayr United," McCall said.
"I believe we have a young and exciting team. The club is moving in the right direction, and I have a very personal debt to our chairman, Lachlan Cameron.
"Having played and managed at Falkirk before I am very aware they are a very special football club and I wish them all the best."
McCall's promoted side are top of the Championship after three games.
An Ayr statement said that Championship rivals Falkirk "acted impeccably".
Falkirk say they parted with Hartley "by mutual consent", the decision coming days after a 3-0 home defeat by Queens that leaves the Bairns bottom of the table without a point after three games.