Woodward, who coached England to World Cup glory in 2003, had been linked with a return to the RFU but after "informal conversations" with senior figures within the union he has decided to remain in his current role as director of sport for the British Olympic Association.
The new performance director was originally intended to have responsibility over all teams up to and including the senior national team but this was then diluted to exclude any involvement in the senior side.
The RFU management board then voted to return to the original job description, but Best believes this uncertainty dissuaded Woodward from holding formal talks.
He told BBC Radio Five Live: "(The RFU) have taken the biscuit this time, made so many U-turns it's embarrassing.
"(You) can't write a job description, change it (and) upset everybody. Why bother speaking to Sir Clive if you don't want him?
"If you want him, go out and get him because he's the best man for the job. This job description was made for him and then they changed it and quite rightly he went ballistic."
Woodward said yesterday: "In order to prevent any further speculation, and in the interests of both the BOA and RFU, I would like to formally confirm that I will not be attending any interviews for this position.
"I am totally committed to my role as director of sport at the British Olympic Association and deputy chef de mission for Team GB in London 2012."
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