Former Brisbane coach Anthony Seibold was set to join the Newcastle Knights before a move that would see him link up with close mate Adam O'Brien collapsed, per Sport Confidential.

Seibold's 2020 campaign with the Broncos was an ugly sight, with the club claiming the wooden spoon and dealing with several off-field incidents, with some centred around their senior coach.

The Knights and Seibold were set to agree to a deal that would see the ex-Broncos coach join as an assistant, with Newcastle powerbrokers now believed to have had a change in tune and will veto the agreement.

It is understood that the clubs decision to backflip comes due to Seibold's past 12 months in charge of the Broncos.

A move south of the Tweed to Newcastle would have linked Seibold up with a close friend in O'Brien, with the pair under the same management and having previously worked together at Melbourne Storm.

However, chances of the pair reuniting now look slim.

Seibold received a $1.5 million payout in his departure of Red Hill, with three years remaining on his five-year contract.

The experienced coach is expected to return to the coaching ranks in the future, but it is now unlikely to be with the Knights.