Sven-Goran Eriksson is to step down as England head coach after the World Cup.
The announcement follows successive weekends of damaging revelations after the Swede (pictured) suggested to an under-cover reporter that he would be prepared to become manager of Aston Villa as part of a takeover bid.
The FA confirmed the decision last night after a day of intense negotiation between Eriksson and Football Association chief executive Brian Barwick.
Once England have competed in the World Cup finals in June and July, Eriksson will part company with the national side, two years before his contract was due to expire, the FA said.
Eriksson and his advisers were duped by an undercover reporter into believing a rich Arab sheikh wanted to give the Swede a new job at the Birmingham club.
The damaging revelations saw Villa manager David O'Leary speak of his "dissatisfaction and disappointment" at the England manager.
In the article Eriksson identified the club as ripe for a takeover and said chairman Doug Ellis was "an old man" and "sick". He also spoke of being able to lure David Beckham, the England captain, to Villa Park.
Eriksson has courted controversy over his personal life and had on previous occasions been found out for having talks about leaving England for a Premiership club.
Neither the FA or Eriksson's advisers are revealing the compensation package which will end the Swede's #4 million-a-year contract as manager of England.