However, he is now having second thoughts and is in talks with Crystal Palace.
Celtic largest individual shareholder and Howe held talks in London last week, and everything was being prepared for him to become Neil Lennon’s permanent successor.
However, the 43-year-old is considering remaining in the English top-flight and Palace are considering him as a potential replacement for Roy Hodgson.
The contract of the 73-year-old expires at the end of the season, and a new manager is being eyed.
The Selhurst Park job is apparently more tempting to Howe compared to Parkhead’s despite the absence of European football, and Celtic now feel that he is using their interest as leverage with Premier League suitors.
As a result, the Scottish Premiership giants are keeping tabs on other managerial targets, and former Borussia Dortmund manager Lucien Favre has been approached.
Celtic know they cannot afford to get their next managerial appointment wrong with Rangers now looking to establish themselves as the best club in the land following this term’s title triumph.
While Howe has not closed the door on managing the Hoops, his chances of landing the job appear to have reduced, and it will be interesting to see what happens in the coming weeks.
The Parkhead outfit need a head coach capable of withstanding the constant pressure and scrutiny that comes with such a job, and maybe Howe is not just the perfect man for it.