The club are reporting that all was agreed with the mystery man but at the last minute his agent demanded more money and additional terms.
The club denied this request and will now start from square one in their search for a new boss.
The name of the candidate is an issue the club won't be drawn on, but Lincoln boss Keith Alexander is one name flying around the rumour mill.
Chairman Peter Furneaux was far from happy.
"I am pleased we found out how he operates before we took the decision," he told the official site.
Manager turns back on Town
"I was expecting him to hear from him with a positive answer today. But I got a call from his agent, who I have never heard of, demanding more money otherwise he would not come."