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Being direct but tactful is the best approach. An example would be something like: "I'm not interested in an intimate relationship with you, (name). I value our friendship, and I'm sorry if this hurts, but you're not my type."Another thing you can do after that is play wingman and try to hook him up with someone else. It's a hell of a lot easier to swallow the fact that someone isn't into you romantically if they're willing to help you find someone awesome.
Well as someone who has fallen right now for his best girl friend , I´d tell you to just tell him openly , don´t play games and if he was really good friend to you and you care about him , you will let him go and not try to keep him as a friend.
No other way than to just say it as nicely as possible, But tell him you value your friendship and wish to keep it going. If you like, say it in a friendship card with a personal note,
It's going to suck can't change it it's like ripping off a band aid faster the better so just say I don't want to date you and I will never be into you
Just tell him that it would be awkward, and you rather have him as best friend than have him as boyfriend
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