"According to what NRK knows, the Nobel Committee has decided that Malala will not be the one receiving this year's Nobel Prize," the news station reported in a story posted on its website on Friday morning.
The channel speculated that the five-strong Committee was concerned that awarding the prize to Malala risked encouraging another assassination attempt from Islamic extremists, and that, at just 16 years' old, she might be too young to cope with the weight of the prize.
The 16-year-old has been far and away the most-hyped candidate to win the award, after the story of her fight for an education in the face of Islamic fundamentalism became a media sensation.
She was shot in the head by the Pakistani Taliban on October 9 last year, after becoming the leading critic of their regressive education policies, an attack that US President Barack Obama called "reprehensible, disgusting and tragic".
Offers to treat her came from across the world, and she was eventually flown to a hospital in Birmingham, UK, where she spent nearly three months, making a full recovery.
Malala herself has said she had not done enough to deserve the distinction, although she told a press conference on Thursday that winning would be "an honour".
According NRK, the Organization for the Prohibition of Chemical Weapons (OPCW), the UN agency which is presently working to rid Syria of chemical weapons, is a favourite.