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Steve Coppell has quit Bristol City after just two games in charge of the Championship side.
The club have already appointed Coppell's assistant Keith Millen as the new manager on a three-year contract.
"It is with the deepest regret that I confirm my departure from Bristol City," Coppell said in a statement.
"I have made my decision after very careful consideration and I believe that it is in the best interests of both the club and me personally that we go our separate ways."
Coppell was named as City's new boss in April, and took charge at Ashton Gate after the end of last season.
Yet his first two matches in charge of the side both finished in defeats, with the Robins being thrashed 3-0 by Millwall on the opening day of the Championship season and then being knocked out of the Carling Cup by League Two Southend.
Those early failures appear to have prompted Coppell to leave, and newly-installed manager Millen claimed he is relishing the challenge.
"I'm excited but I'm still getting over the shock really," said the 43-year-old.
"I did enjoy working with him and we are still friends. We met last night, when he told me the news. He apologised for leaving me in this situation."
"I know Bristol City fans like to see entertaining football; I've been here long enough to know what their expectations are. I've got high expectations as well."
Former Manchester United and England winger Coppell admitted that while he was impressed by the club set-up he failed to feel the necessary passion for the job.
"Bristol City is an excellent club, with brilliant support and a chairman with great ambition for the club's future," he said.
"Whilst I was looking forward to the challenge of leading the players in this season's campaign, unfortunately, it has become clear over recent weeks, that I found I could not, for whatever reason, become passionate about the role and give the commitment the position demands."
The 55-year-old added that he does not expect to return to club management, but does expect to keep working in football.
"I am retiring from football management but still feel I have a contribution to make to the game sometime in the future," he said.
Club chairman Steve Landsdown expressed his sadness at Coppell's decision to leave.
"Steve's prestigious career as a player, coupled with his experiences and successes as a manager are in no doubt. His footballing pedigree made him our prime target to manage the club early this year," he said.
"It is disappointing for any club to part company with its manager at this stage of the season. However, we respect Steve's decision, one that allows us the opportunity to appoint his successor and give that individual the full season to work with the squad."
Lansdown added that he was delighted to promote Millen to be the new manager.
"This was not a difficult decision. He's managed the team on previous occasions, he understands the football club and has great affection and ambition for it," said Lansdown.
"I always expected Keith to become a manager one day and now he has the opportunity at Bristol City FC. I look forward to working with him and helping him succeed."
The club have already appointed Coppell's assistant Keith Millen as the new manager on a three-year contract.
"It is with the deepest regret that I confirm my departure from Bristol City," Coppell said in a statement.
"I have made my decision after very careful consideration and I believe that it is in the best interests of both the club and me personally that we go our separate ways."
Coppell was named as City's new boss in April, and took charge at Ashton Gate after the end of last season.
Yet his first two matches in charge of the side both finished in defeats, with the Robins being thrashed 3-0 by Millwall on the opening day of the Championship season and then being knocked out of the Carling Cup by League Two Southend.
Those early failures appear to have prompted Coppell to leave, and newly-installed manager Millen claimed he is relishing the challenge.
"I'm excited but I'm still getting over the shock really," said the 43-year-old.
"I did enjoy working with him and we are still friends. We met last night, when he told me the news. He apologised for leaving me in this situation."
"I know Bristol City fans like to see entertaining football; I've been here long enough to know what their expectations are. I've got high expectations as well."
Former Manchester United and England winger Coppell admitted that while he was impressed by the club set-up he failed to feel the necessary passion for the job.
"Bristol City is an excellent club, with brilliant support and a chairman with great ambition for the club's future," he said.
"Whilst I was looking forward to the challenge of leading the players in this season's campaign, unfortunately, it has become clear over recent weeks, that I found I could not, for whatever reason, become passionate about the role and give the commitment the position demands."
The 55-year-old added that he does not expect to return to club management, but does expect to keep working in football.
"I am retiring from football management but still feel I have a contribution to make to the game sometime in the future," he said.
Club chairman Steve Landsdown expressed his sadness at Coppell's decision to leave.
"Steve's prestigious career as a player, coupled with his experiences and successes as a manager are in no doubt. His footballing pedigree made him our prime target to manage the club early this year," he said.
"It is disappointing for any club to part company with its manager at this stage of the season. However, we respect Steve's decision, one that allows us the opportunity to appoint his successor and give that individual the full season to work with the squad."
Lansdown added that he was delighted to promote Millen to be the new manager.
"This was not a difficult decision. He's managed the team on previous occasions, he understands the football club and has great affection and ambition for it," said Lansdown.
"I always expected Keith to become a manager one day and now he has the opportunity at Bristol City FC. I look forward to working with him and helping him succeed."
