Sven-Goran Eriksson left Manchester City on Monday, less than a year after taking over as coach of the Premier League club.
A statement on City's Web site said the 60-year-old Swede had parted company with the club by mutual consent.
"The Board of Directors and all at Manchester City would like to thank Sven for his efforts and contributions throughout the season and we wish him all the best for the future," City's chief executive Alistair Mackintosh said in the statement.
"Sven remains a friend of the club."
Despite steering City to a creditable ninth place in the Premier League, the former Benfica, Lazio and England coach had come under pressure from Thai owner Thaksin Shinawatra after a poor second half to the season.
His last competitive game in charge was an 8-1 humiliation at Middlesbrough on the last day of the season but despite that result Eriksson remained popular with the fans.
"I have enjoyed my time at Manchester City very much indeed and in particular, I would like to thank the fans, players and staff for their amazing support over the season," Eriksson said in the joint statement.
"I wish the club, and everyone associated with it, much success in the coming years."
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