Erik Hamren will step down as head coach of Iceland after his side's final Nations League game against England on Wednesday.
Iceland lost their Euro 2020 playoff to Hungary on Thursday after conceding two late goals and that has prompted the 63-year-old, who led his native Sweden to the Euros in 2012 and 2016, to step away.
"We didn't qualify for the Euros, and Iceland start their World Cup qualification in March. And in that case, I think it's best that others take over and lead Iceland toward the World Cup," he told a press conference ahead of their penultimate Nations League group game against Denmark on Sunday.
Iceland, who travel to England for their final group game next Wednesday, are bottom of League A Group 2 with no points from four games.
(Reporting by Philip O'Connor editing by Pritha Sarkar)
