The former Hibs boss had emerged as the frontrunner to replace Mark McGhee following the club’s relegation to the Championship.
Negotations have been progressing over the last 10 days, however, after being unable to reach a successful conclusion, it now appears that both Maloney and Dundee are prepared to move on.
According to reports, Maloney has stalled on the offer to reunite with former Celtic and Scotland boss Gordon Strachan, who has now stepped into the role of Director of Football having worked as a technical adviser to the Dens Park club since 2019.
It is claimed that the 39-year-old has not had the assurances he was looking for as he searches for the right environment for his second stab at management after being sacked just four months into his first job at Hibs.
Maloney’s reluctance to take up the offer has led Dundee to ‘cool their interest’ in appointing the former Belgium assistant coach.
Dundee will now return to their shortlist with former player Kevin Thomson, who this week stepped down as Kelty Hearts manager after guiding them to the League Two title, believed to retain an interest in the role.
The former Rangers, Hibs midfielder is also in the running for a coaching role at Queen’s Park Rangers under new manager Michael Beale, Steven Gerrard’s former assistant, who Thomson worked with at Ibrox while employed as a youth coach.