Harry Redknapp says he is sad to be leaving his post as Tottenham manager after almost four years at White Hart Lane.
The club confirmed the news of his departure on Thursday morning, following talks between Redknapp, his agent Paul Stretford and Spurs chairman Daniel Levy on Wednesday.
The 65-year-old had a year left on his contract and is understood to have been unhappy with Levy's failure to offer him a new three-year deal.
Negotiations over a new deal for Redknapp have stalled since the start of the year when Redknapp was linked with the then vacant England manager's job.
Levy told the Spurs website: "This decision in no way detracts from the excellent work Harry has done during his time with the club and I should like to thank him for his achievements and contribution.
"Harry will always be welcome at the Lane."
Redknapp added: "I have thoroughly enjoyed my time at Spurs and am proud of my achievements.
"I am sad to be leaving but wish to thank the players, staff and fans for their terrific support during my time there."
Everton boss David Moyes is now the odds-on favourite to replace Redknapp, whose failure to secure Champions League football looks to have led to his impending departure.