Tottenham Hotspur have confirmed Harry Redknapp is to part company with the club after failing to agree a new contract.
Redknapp held crunch talks with chairman Daniel Levy on Wednesday in the hope of agreeing a new deal, but they failed to agree common ground and the 65-year-old has left his position after three-and-a-half years in charge at White Hart Lane.
It is understood Redknapp was seeking a three-year contract, as his existing terms were due to expire in the summer of 2013, but Spurs were unwilling to match his demands.
"This is not a decision the board and I have taken lightly," Levy said. "Harry arrived at this club at a time when his experience and approach was exactly what we needed. The 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 said: "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."
The former West Ham boss guided the club to fourth in the Premier League but Chelsea's victory in the Champions League meant they missed out on a place at Europe's top table.
Spurs must now begin the search for a new manager, with Everton's David Moyes the current bookmakers' favourite and Wigan Athletic's Roberto Martinez also reported to be in the reckoning.