Ms Lemmie was the candidate of choice of an all-party appointment panel although the panel believed it had a stunning short list of candidates.
Today, the City Council and Ms Lemmie have agreed that it is not possible to keep open the offer of the job of Chief Executive, given that outstanding matters have not yet been resolved.
Councillor Albert Bore, Leader of the Council said: 'I am extremely disappointed that we have been unable to confirm the appointment of Valerie Lemmie as the Chief Executive. Valerie was an outstanding candidate and her talent and ability would have allowed her to make a huge contribution to Birmingham. Sadly, it appears that she was unable to resolve a number of personal anxieties arising from a move from the USA to Birmingham.
'So far as our discussions with Valerie Lemmie are concerned, this is now the end of the matter and the job offer has been withdrawn. We will now take a little time to consider what to do next'.
Ms Lemmie said: 'I am extremely honoured to have been considered for the position of Chief Executive for the City of Birmingham. The city and people I met there were gracious and inviting. I appreciate the patience and understanding they demonstrated as we worked to negotiate the financial terms of the position, and I regret any difficulties that this process may have caused. I certainly wish Birmingham well in selecting a candidate whose personal and professional circumstances are better suited to meet their needs at this time.'