The Seahawks talked with Holmgren over the weekend about a senior leadership position.
"After a series of respectful discussions, Mike has declined our offer to rejoin the team given the structure we proposed," Seahawks CEO Tod Leiweke said in a statement. "We hold Mike in high regard and wish the Holmgren family the very best with their new horizons."
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The 61-year-old Holmgren won a Super Bowl with the Packers and led the Seahawks to their only Super Bowl appearance as a head coach.
"I sincerely thank Paul Allen and Tod for all their support over the years," Holmgren said in a statement. "I thank them for reaching out to me and we conclude these discussions as friends."
Holmgren has also been interested in joining the Cleveland Browns. He spent two days meeting with Browns owner Randy Lerner earlier this week.
One NFL source told ESPN senior NFL analyst Chris Mortensen that Holmgren's pending deal with the Browns was expected to be worth $50 million, possibly over 10 years.
Holmgren was expected to let the Browns know a decision by Monday, The Plain Dealer of Cleveland has reported.
Holmgren said on his radio show in Seattle on Friday that he planned to give Lerner an answer "sooner than later" but added there was no definite timetable. It may have accelerated after he declined an offer to rejoin the Seahawks.
"It's a wonderful opportunity for anybody," Holmgren said of his visit to Cleveland. "It's about as good a job situation as you could ask for in this business."
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