Harry Redknapp is to leave his post as Tottenham manager, the club have announced.
Redknapp and agent Paul Stretford spent Wednesday in negotiations with chairman Daniel Levy and it became clear during the evening the former Portsmouth boss was close to ending his three-and-a-half-year tenure at White Hart Lane.
The 65-year-old had 12 months left on his contract and is understood to have been unhappy with Levy's failure to offer him a new three-year deal.
Levy told the Spurs website: "This is not a decision the board and I have taken lightly.
"Harry arrived at the club at a time when his experience and approach was exactly what was needed.
"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 have had a fantastic four years with the club, at times the football has been breathtaking.
"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 the odds-on favourite to replace Redknapp, whose failure to secure Champions League football looks to have led to his impending departure.