I'm no expert here, so please don't yell at me if you don't think that this is good, but you could just say, "Listen, you're a great guy and eeverything, but it wouldn't be right for me to go out with someone that I didn't truely like. It wouldn't be fair to you, adn you wouldn't appreciate it later. As a friend you are great, but i just dont like you in that way. I'm sorry, but I dont decide who I like, unfortunately." or something along those lines, but do it nicely adn remind him that there is someone out there for him. and make sure its in person.
Hope that helped =)
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