The Lions made contact with Worsfold's management at the end of the season to gauge his interest in pursuing the position.
They followed up again after the 2006 premiership coach told the Eagles last Thursday he was resigning from the position that he held for 12 seasons.
However the club confirmed it was told on Monday that Worsfold would not be seeking the job.
AFL.com.au understands Worsfold is keen to take a break from coaching. He coached the club to 149 wins in 281 games and in eight finals series.
A legend at the Eagles, Worsfold played 209 games for the club and has been involved in its three premierships as captain and coach.
The Lions will continue the process of finding a coach, having sensationally sacked Michael Voss after round 20 in the hope of securing Sydney Swans premiership coach Paul Roos.
However Roos rebuffed their approach and became Melbourne coach last week.
The Lions interviewed Hawthorn assistant coach Adam Simpson and Neil Craig, the former Adelaide coach and recent caretaker coach at Melbourne, last week.
It is conducting further interviews with candidates this week.
