The man who helped construct the squad to end Liverpool's three-decade title drought while advancing their facilities and backroom staff, engaged with Todd Boehly and Clearlake Capital over the evolution at Stamford Bridge.
Edwards, on a self-decided sabbatical, had shunned talks with several of Europe's elite but listened to the proposal from Chelsea who wanted him sit at the top of their football operations.
Recruitment would have been one of the departments feeding into him under their vision.
Edwards was interested in the scope of the role, but said the timing was not right as he sticks to his commitment of spending time with his family.
Edwards' exit from Liverpool doesn't include contractual clauses preventing him from starting a new job immediately if he wished.
The break from the game is on his terms and is expected to last at least until the summer
It would take an offer similar to Chelsea's to gain Edwards' attention.
Sky Sports News has been told suggestions he is close to agreeing a deal with Manchester United are fiction.
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