Thordarson says no to Hibs job
Hibs are without a manager following Bobby Williamson's move to Plymouth Argyle and Thordarson initially indicated that he wanted to take the role, only to have a last-minute change of mind.
A Hibs spokesman confirmed: "He's not coming now. As everyone knows, he was at the game on Saturday and discussions were held with him on Sunday regarding terms and conditions.
"An agreement was reached and he discussed it with his wife and family before phoning to say that he would take the job until the end of the season.
"As far as we knew, that was the situation but he had another think about it overnight and decided he would rather keep himself available for permanent employment."
Of the club's progress towards appointing a permanent manager, the spokesman added: "He (Thordarson) was never going to be the replacement for the manager anyway, just a temporary appointment, so the search goes on.
"The club will take time to make a decision and we don't feel the need to rush as it's a very important decision."