The French outfit are looking for a new boss following the shock resignation of Marcelo Bielsa afer their Ligue 1 opener at the weekend and they had earmarked Klopp as the ideal replacement.
However, the 48-year-old, who parted company with Dortmund at the end of last season, is not interested in returning to coaching just yet.
"It is correct that Klopp has rejected Marseille," Klopp's representative, Marc Kosicke, told Bild.
"OM were really interested in signing him, but the time is not right yet for Jurgen to return to coaching."
Klopp spent seven years in charge at Signal Iduna Park, winning two Bundesliga titles and one DFB Pokal, as well as leading Dortmund to the 2012-13 Champions League final, which they lost to Bayern Munich.
The German's decision to reject OM's offer means the Ligue 1 outfit will have to turn their attention elsewhere, with Zinedine Zidane and Eric Gerets also believed to be in the frame for the job.
