The 68-year-old says he is ready to stand aside to let a new coach bring fresh enthusiasm to the club after his five-month reign in charge
The 68-year-old stepped into the void during the winter break after the sacking of Vladimir Petkovic, returning to the club where he had a previous spell between 2010 and 2012.
However, the veteran Italian has elected to move on, believing the time is right for the Stadio Olimpico outfit to bring in a fresh face.
"The president reiterated his aims, but I think that it's right that Lazio change coach, my cycle is over," he told reporters.
"[A change of environment] could bring back the enthusiasm. We did well in the last period of the series but did not qualify for the Europea League.
"That would have made things completely different and a lot of players would have accepted Lazio more easily. The club, however, are working well in the market."