Marc Jacobs thinks it was best for everyone that he didn't make the move to Christian Dior.
For several weeks the American designer was viewed as the frontrunner to replace John Galliano as the head designer at the fashion house.
He has now confirmed he is staying at Louis Vuitton and feels happy with the decision.
"It's a great honour to be considered, and Mr Arnault [chairman of Dior] is a super intelligent man and a very smart man and it was certainly a very great honour for him to know that I was capable - and not only capable but that I am someone that he would have wanted for the job.
"But I am very happy to be here.
"There is so much more left to do and building Louis Vuitton into a fashion company is something nobody else can say they really started," Jacobs told British newspaper The Telegraph, before being asked if the staying at Vuitton was his choice.
"Well it's a little bit more complicated than that but we agreed that it was probably best for everyone."
Jacobs is now focusing on his work at Vuitton and it's just been announced that the company is planning a fragrance.
Perfumer Jacques Cavallier-Belletrud is working on it.
"Perfume is something I wanted to do here since the beginning," Jacobs said.
"I don't know when it will be launched but we are in the process of working on it - there was a perfume back in the Twenties, a very niche little thing."
The designer also discussed the upcoming exhibition in Paris which is dedicated to him and the fashion house. Louis Vuitton - Marc Jacobs will be staged at Musee des Arts Decoratifs from March and will see some of the label's most iconic pieces displayed.