Fernandez, 58, left Ligue 1's bottom club earlier in January after 18 months in charge.
Nancy were suffering from financial problems and his departure led to reports he was set to coach in one of the Arab countries, having worked in the Middle East for much of the 1990s.
But the former Cannes and Marseille boss, who famously took Auxerre to the Champions League two seasons ago, insisted he had no intention of leaving France.
"I have never been motivated by money," he said. "It has always been about passion.
"I did not want to sit on a two-and-a-half year contract with a club in that predicament. I'll take a step back, review my notes and go back to work.
"I want to return in the French league because it's the one I know best."