David Moyes will leave the role of West Ham manager “by mutual consent” when his contract expires at the end of the season.
The club confirmed the news on Monday evening, amid reports that the former Spain, Real Madrid and Wolves head coach, Julen Lopetegui, has agreed a deal to take over in the summer.
Moyes said: “I have enjoyed four-and-a-half brilliant years at West Ham, and the club is in a stronger position than when I returned back in 2019.
“When I joined West Ham for a second time, the club was one place above the relegation zone, and it has been a terrific journey to have achieved three consecutive seasons in Europe.
“After leading the club to safety, we guided the team to finishes of sixth and seventh in the Premier League, and I was delighted when we won the Europa Conference League title last June – the club’s first major trophy in 43 years.
“I would like to thank all the players for their support, and all the success they have achieved, over the last four-and-a-half years.”
West Ham were thrashed 5-0 by Chelsea on Sunday to effectively end their slim hopes of earning European qualification for a fourth straight season.
The heavy defeat comes on the back of a 2-2 draw to Liverpool and 5-2 loss at Crystal Palace and they now sit ninth in the Premier League table with two games to go.
Lopetegui guided Wolves to safety last season but left the club after nine months on the eve of the new Premier League campaign in August.
The former Porto and Sevilla boss lifted Wolves from the bottom of the table to a 13th-placed finish during his spell in charge.