Lee Ashcroft resigned as Kendal Town manager on Tuesday.
The 40-year-old former Wigan, West Brom and Preston North End striker left the Evo-Stik NPL Premier Division club with immediate effect.
Kendal, who face high-flying Witton Albion at home on Saturday, have installed reserve team boss David Foster as caretaker manager.
Ashcroft – who had been at Parkside Road since 2004 and manager since 2006 – leaves with Kendal just one point above the relegation zone.
Kendal say the club's management committee reluctantly accepted Ashcroft's resignation and agreed to terminate his contract following discussions over the playing budget and reducing income.
Kendal Chairman Haydon Munslow wished his former manager well as the hunt began to find his replacement.
Munslow said: "During the last two and a half seasons it has been a pleasure to work with Lee who has provided loyal and dedicated service.
"We’ve faced some considerable challenges together, but we do not now have sufficient funds to continue on the current basis. We all wish Lee the very best for the future and thank him wholeheartedly for everything he has done for Kendal Town."
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