James Beattie has left his position as manager of Accrington Stanley on the eve of the Reds' game against AFC Wimbledon.
The club confirmed on Friday evening that they and Beattie have decided to terminate their contract by mutual consent with immediate effect.
“It is with a hugely heavy heart that I decided to end this journey,” he said.
“I can never fully repay the faith and backing I got from the players, my staff and of course the fans, who always gave me 100 per cent.
“I thank them from the bottom of my heart for granting me the opportunity and privilege to be part of your unique club.”
Beattie, 36, led Stanley to their first win of the season last Saturday but had expressed growing frustration with the tight financial restraints he had to work with at the Store First Stadium.
The club continues to have the smallest budget in the Football League this season and although Beattie was able to bring former captain Andy Procter back to the club on transfer deadline day, he said there would have to be outgoings to balance the books.
The Reds then released left-back Jordan Mustoe and teenage midfielder Connor Martin on Thursday at the end of their short-term deals, with Beattie saying: “With the way that finances are here, a few players have had to move on to reduce the weekly outgoings. It’s as simple as that.”
Assistant manager Paul Stephenson will take charge of the team for Saturday’s League 2 match at home to AFC Wimbledon.
This was Beattie's first managerial appointment after an illustrious playing career in which he played in the Premier League for Southampton, Everton and Stoke, winning five caps for England.
The former striker was lured to Stanley by his old friend Leam Richardson in November 2012 in a player-coach role.
Richardson then recommended Beattie for the manager's job when he left for Chesterfield at the end of the 2012/13 season.
Beattie was appointed in May 2013 and despite taking 13 games to register his first League 2 win, he managed to steer Stanley to safety.
And even though the Reds had again started poorly this season, failing to win in their first five league games, Beattie insisted he still had faith in his players.
“It was a relief to get the first win but I totally believe in what we’re doing, and more importantly, the players believe in it,” he said after last Saturday's 3-2 win against Tranmere.
“We give the lads everything we can and they give us everything back. That’s the relationship we have and that’s the way it’s got to be.
“I can’t say enough nice things about the lads because they’re as honest as the day is long. They’re a credit to the badge.”
A club statement read: “Everyone at Accrington Stanley would like to thank James Beattie for all his efforts during his tenure at the club and wish him and his family all the best for the future.”