Wayne Rooney stepped down as coach of DC United shortly after the club was eliminated from playoff contention Saturday night.
The club also released a statement saying the sides had mutually agreed to part ways.
DC United defeated New York City FC Saturday night.
Although DC United had the chance to end the night in possession of the ninth and final Eastern Conference spot, the schedule guarantees that at least one other club will move above the Black-and-Red by the final day thanks to Montreal's win against Portland Saturday.
"It's the right time," the 37-year old Rooney said.
"I've done everything I can to get this club into the playoffs. It's not a single thing that's happened. It's about timing."
DC United finished 10-14-10 (40 points) in Rooney's only full season in charge.
"We have spoken with Wayne and agreed it is best for us to part ways at this time. This decision creates the avenue for our next general manager to have the full opportunity to impart a new philosophy and structure onto our sporting operations, which begins with the critical identification of a head coach who will best align with this," DC United CEO and co-chairman Jason Levien said in a release.
As a player, Rooney had 23 goals and 15 assists in 48 matches for DC United in 2018-19.