Harry Redknapp is set to leave his position as Tottenham manager following the irreconcilable breakdown of his relationship with chairman Daniel Levy, Goal.com understands.
The two parties are now discussing a compensation package after it became clear in a meeting on Wednesday with Redknapp and Paul Stretford, the agent appointed to negotiate a new contract for the 65-year-old, who had a year to run on his existing deal.
Redknapp’s departure is likely to be explained as a mutual agreement between both parties but, ultimately, the decision was made by Levy after the former Portsmouth boss made it clear he felt his time was up but refused to resign.
Levy had made it clear that Redknapp would not be offered the three or four-year contract he wanted after holding the manager responsible for Spurs' failure to achieve a place in next season's Champions League having thrown away a 10-point lead over rival Arsenal.
The hierarchy at White Hart Lane felt that Redknapp had been distracted by speculation linking him with the England job and concerns were raised about his match preparation, training and tactics.
Redknapp, who was appointed Spurs manager when the Londoners were bottom of the table in October 2008, took the club to two fourth-placed finishes in three full seasons but had a prickly relationship with Levy throughout his time at White Hart Lane.
Wigan manager Roberto Martinez and Everton boss David Moyes are expected to be the leading candidates to replace Redknapp. Brendan Rodgers, the new Liverpool manager, was previously the club's first choice candidate before he was appointed to the Anfield hotseat.
Redknapp was forced to deny rumors on Tuesday that he had quit Spurs but the decision was made for him by Levy, who is thought to have been particularly angered by Redknapp’s public maneuvering for a new deal.
Redknapp had suggested that players would be unsettled if he was not offered a longer deal, having previously claimed that the squad would not be affected by speculation linking him with the England position.