(CNN) -- Harry Redknapp has apparently paid the price for failing to deliver European Champions League football next season after English club Tottenham Hotspur announced the end of his four-year reign as manager.
The 65-year-old's position in the game has plummeted in recent months, having gone from favorite for the England job to unable to win a new contract at a club he guided from the danger of relegation to top-four contenders in the Premier League.
However, a fourth-place finish last season was not enough to secure a Champions League place due to sixth-placed Chelsea's historic first title triumph in Europe's top club competition.
"This is not a decision the board and I have taken lightly," Spurs chairman Daniel Levy said in a statement on the London club's website, posted at 2.27 a.m GMT on Thursday.
"Harry arrived at the club at a time when his experience and approach was exactly what was needed.
"This decision in no way detracts from the excellent work Harry has done during his time with the club and I should like to thank him for his achievements and contribution. Harry will always be welcome at the Lane."
Earlier this week, Redknapp denied reports that he had resigned after failing to agree a new long-term contract, with one year left on his previous deal.
He said in a statement on the Tottenham website that he was proud of his time in north London, having guided Spurs to the Champions League quarterfinals in the 2010-11 season.
"I have thoroughly enjoyed my time at Spurs and am proud of my achievements," said Redknapp, who had heart surgery in November. "I have had a fantastic four years with the club, at times the football has been breathtaking.
"I am sad to be leaving but wish to thank the players, staff and fans for their terrific support during my time there."
The former Portsmouth manager was heavily linked with the England job when Fabio Capello resigned in February after being cleared of any wrongdoing in his highly-publicized court case for alleged tax evasion, but the English Football Association instead opted to appoint Roy Hodgson in May.
Redknapp took over at Tottenham in October 2008 after Juande Ramos was sacked, with the club bottom of the English Premier League.
The former West Ham United player and coach guided Spurs to an eighth-place finish that season, before leading the club to fourth position in 2010 and a place in the Champions League.
Spurs impressed, beating seven-time champions AC Milan in the round of 16 before being eliminated by Spanish giants Real Madrid in the quarterfinals, but missed out on qualifying for last season's competition after finishing fifth in the league.
Tottenham seemed certain to secure a Champions League place in 2011-12 after a superb start to the season, but results fell away after Redknapp's court case and London rivals Arsenal rallied to claim third place before Chelsea's penalty shootout success in Munich condemned Spurs to the second-tier Europa League.