"We have been in contact and there were exploratory talks, but we will not be pursuing this further. The topic took care of itself," Nuremberg's chairman Thomas Grethlein told Sport1.
"There are several reasons, both on his side and on ours."
Reports earlier on Monday had suggested Lehmann was in line to take over at Nuremberg, but after initially admitting it could happen, Grethlein did a U-turn.
The 45-year-old Lehmann retired in 2011 after winning 61 caps for Germany, plus 148 Premier League appearances for Arsenal, and has been working as a television pundit for German broadcaster RTL.
He has earned his football coaching licence and has been linked to managerial roles at both Bundesliga side Stuttgart and second division 1860 Munich.
In late July, Nuremberg's director of sport Martin Bader handed in his resignation after 11 years and will leave the club at the end of September.