Evans, who left Elland Road at the end of last season, had spoken to officials at Boundary Park with a view to succeeding former United player John Sheridan, who was linked with the Leeds vacancy earlier this summer.
Sheridan, who helped Oldham to safety in League One at the end of last term, was subsequently appointed manager of League 2 side Notts County, while Evans was replaced at Elland Road by former Swansea City manager Garry Monk.
In a statement from the Latics read: “The club can confirm that after conducting extensive negotiations with Steve Evans and agreeing terms, he has decided not to become the new manager of Oldham Athletic.
“Mr Evans feels unable to commit to the opportunity as he has other offers in the pipeline and this did not meet with Oldham Athletic’s deadline.
“We will now focus on our alternative candidates for the role with an announcement as soon as practically possible.”