"I had heard whispers, but he just confirmed it," wrote Vanessa Friedman, Fashion Editor at the Financial Times this morning.
"The story of what happened with John is a sad story, he said when I asked him, and he didn't want to be part of the next chapter," she wrote.
It has also been suggested that Alaia's age was another reason for him turning the position down - he's in his 70s - along with the fact that he's been one of the most outspoken critics of the fashion industry's fast pace and pressure to churn out countless collections - that very pressure being cited as one of the reasons for Galliano's downward spiral.
What do you think, would Alaia have been a good replacement for Galliano? Who would you like to see take the helm at Dior? Let us know in a comment below: