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.