A formal letter of decline is a professional way to turn down an offer. The intent is to indicate your appreciation, explain why you are not accepting, and consequently avoid burning any bridges with the employer. If you are still open to negotiation then you would delineate your conditions in this document.
Not burning bridges is an important part of this, as you never know when this contact may be of value to you in the future.
Letter Of Decline Example
June 5, 2006
Mr. Grady Gagas
Director of Software Research and Development
DMI Corporation, Inc.
1111 West 9th Street
New York, NY 12345
Dear Mr. Gagas,
Thank you for offering me the position of Software Engineer 2 with DMI, Inc. After careful consideration, I have decided to accept another position, which I believe will utilize and further develop my programming skills.
DMI, Inc. is a terrific company and I appreciate being considered for such a fine opportunity. I wish you all the best.