Sunderland have suffered a huge blow in their search for a new manager after Aberdeen manager Derek McInnes informed them he no longer wants the job.

Sunderland chief executive, Martin Bain, had been confident of finalising the terms of a new contract on Thursday afternoon after agreeing compensation with Aberdeen.

But McInnes has decided not to move to the Stadium of Light and is understood to have been concerned about Sunderland owner Ellis Short’s continued determination to sell the club.

Telegraph Sport understands that takeover talks have reached an advanced stage and McInnes was concerned that the new owners would want to appoint their own manager if they complete a takeover.

McInnes has always had reservations about accepting the Sunderland job because of the tricky financial situation at the club after relegation, but Bain had hoped to reassure him that there would be money to spend following the sale of Jordan Pickford to Everton for £25m.

McInnes, though, has decided he does not want to take the risk and Aberdeen gleefully tweeted that both he and assistant Tony Docherty have elected to remain at Pittodire.