The Leicester coach says Mike Ashley's decision to sack "popular manager" Chris Hughton puts him off the idea of moving to St James' Park.
Chris Powell: "I have a job to do here at Leicester City.
"This has all come as a bit of a surprise to me. It is flattering to be linked with a Premier League club so early in my career, but I have a job to do here at Leicester.
"Sven-Goran Eriksson and I had a chat and he is keen for me to stay and, as far as I'm concerned, that is what I am doing.
"Under Sven and the new owners, the club is on the verge of a big new thing and I think there is only direction which they are going in and that is upwards.
"They have a situation up there where a popular manager (Chris Hughton) has moved on and they have brought in Alan.
"If one man can get them going, it is him. He did it at West Ham."