The 61-year-old held talks with the Swedish Football Association (SvFF) over the possibility of taking over from Lars Lagerback, who stepped down following the team's unsuccessful qualifying campaign for the 2010 World Cup.
However, after his attempts to negotiate a job-share proposal with his bosses at the League Two club, the Swedish national has turned down the approach and opted to remain at Meadow Lane.
'Last week we contacted Sven as we thought he could be a possibility for the job of national team coach,' said SvFF chairman Lars-Ake Lagrell.
'We had positive talks with him, but he has decided that because of his existing contract with Notts County there is no possibility of him taking charge of the national team for the time being.'
Lagrell confirmed the SvFF would continue their search for a new head coach with a view to announcing an appointment in the next few weeks.
Fulham manager Roy Hodgson is also thought to have been approached, although the former Malmo and Finnish national coach turned down the proposal.
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