The Danish tactician has decided to throw in the towel as a result of ongoing problems with club owner Lorenzo Serra Ferrer
Larsen was fired on Monday after openly criticising club owner Lorenzo Serra Ferrer in an interview with a Danish publication at the weekend.
The sacking of one of his assistants was the latest chapter in a number of incidents between Laudrup and Serra Ferrer. The former Barcelona and Real Madrid player had been on bad terms with the club owner ever since the summer transfer window, and the Dane has now decided to throw in the towel.
"Mallorca will be whatever Serra Ferrer wants it to be," Laudrup was quoted as saying at the press conference in which he announced his departure.
The 47-year-old had been in charge at Mallorca since July 2010. His contract with the Primera Division side was due to expire at the end of the season.