Roberto Martinez has left FA Cup holders Wigan Athletic following a meeting with club chairman Dave Whelan, who revealed that Everton have made an approach for the Spanish coach.
Martinez gave Whelan a final answer on his future in a lunchtime meeting after flying home from a break in his home country.
A decision had been expected after an initial meeting last Thursday, but the Latics boss instead asked for the Bank Holiday weekend to think things over as he went away for a short holiday.
"He feels he's not the man to lead us back into the Premier League," Whelan said. "I've got to accept what he feels.
"He loves Wigan and the fans. We have to move on now and want applications for the job."
Martinez's request to leave was subsequently confirmed in a Wigan club statement.
Martinez has been a leading candidate to take over at Goodison Park ever since David Moyes' departure to take charge at Manchester United.
Whelan confirmed that Everton have made an official approach to Wigan for his services.
"Roberto wants to move on," Whelan said. "We will let him go but he's on a 12-month rolling contract so if he moves someone will have to buy him out of his final year.
"Everton rang me and I said they have permission to talk to him."
Whelan was keen to keep hold of his manager, who guided the Latics to FA Cup success for the first time in their history as they beat Manchester City 1-0 at Wembley on May 11.
The Spaniard had asked the chairman to outline his plans for Wigan's new training ground and youth development policy, suggesting that he would be prepared to stay.
However, Martinez ultimately decided against following the club down into the Championship, having been unable to steer them clear of relegation.