Paolo Di Canio has confirmed his resignation as the manager of Swindon Town, via a statement released to the Swindon Advertiser, after a deadline for the completion of the club's sale passed.
Di Canio, 44, joined Swindon in 2011 and guided them to the League Two title in his first season with the club. Currently sitting sixth in League One on 55 points, Swindon have enjoyed a less than harmonious time off the pitch this season.
Despite a local consortium securing a takeover of the club, the deal was not ratified in time, forcing the club to sell star player Matt Ritchie and cancel a trio of deals for incoming players.
Having previously said he would invest his own money in Swindon, Di Canio refused to comment on his position after admitting he was considering his future with the club earlier this month.
In a statement released by the Swindon Advertiser on Monday, Di Canio said: "Last Tuesday, February 12, I formally confirmed my resignation as manager of Swindon Town Football Club with immediate effect.
"In my previous press statement on February 1, I said that I was considering my future, as my position with the club had become untenable, after I found out that Matt Ritchie had been sold without my consent.
"As I had previously stated, there have been a number of broken promises made by the club over the time that I have been manager of Swindon Town.
"Despite these problems, I have delivered everything and more that was asked of me, by achieving promotion last year as champions and competing this season for promotion to the Championship and being just three points from top place a year earlier than expected.
"I did not resign immediately, nor publicise my resignation after I had formally confirmed it, as I did not want to jeopardise the negotiations for the sale of the club and I wanted to listen to what the proposed new owners plans were."
He went on to add: "Following discussions, my representatives put forward a proposal that would secure my future at the club until at least the end of the season and quite possibly beyond as well. This proposal actually reduced the club's contractual liabilities to me in the interest of saving Swindon Town FC. At a meeting last Friday the proposed new owners accepted and said they were very happy with the new terms.
"I entered into a temporary arrangement with the proposed new owners to continue in my role as manager but all this was agreed subject to Football League approval for the purchase of the club being granted by 5pm on Monday February 18.
"At the time of issuing this statement, I have had no further contact from the proposed new owners and I have been told that unfortunately Football League approval has not been granted yet and therefore my temporary arrangement has ended and my resignation stands."
Swindon responded to the news with a statement on their official website. It read: "The board are disappointed that Paolo Di Canio has made the decision to resign at such a critical time for Swindon Town Football Club.
We are also disappointed that the sale of the club has yet to be approved, but we hope the outstanding issues with the Football League will be resolved within a short period of time.
"It is worth noting that Matt Ritchie was sold due to the tremendous financial pressure the club is facing and in order to continue operating whilst the sale of the club went through. We understand the prospective new owners had reached agreement with Paolo Di Canio on bringing in loan players to strengthen the squad for a final push for the Championship.
"Until the situation has been resolved, Fabrizio Piccareta will be in temporary charge of the team as we travel to Tranmere Rovers tomorrow, where a win would see Swindon become leaders of League One. The board shares the fans' tremendous frustration at the events of the last few weeks and is determined to resolve these issues to ensure the best outcome for the club."