Manager Quique Sanchez Flores will leave Watford at the end of the current campaign, the English Premier League club said on Friday.
Under the 51-year-old Spaniard, Watford achieved an unexpected FA Cup semi-final berth and secured safety in the EPL, sitting 13th with a match to go.
Flores, who joined the club during the off-season, recently revealed there was a break clause in his contract. He is the fifth manager in two years to depart the club under Italian owner Gino Pozzo.
In a news conference, the Spanish coach said "we don't have the same point of view about the season. So we don't have the necessary conditions to activate the clause to renew the contract"
His contract will expire at the end of June.
Just three wins from their past 14 league games had raised questions whether Flores was the right man to lead Watford to a sustained period of success in the top flight despite guiding the promoted club to safety.
"We would like to thank Quique. He and the team achieved the target set them at the start of the season of staying in the Premier League for a second year," the club said on their website (www.watfordfc.com).
Watford face fourth-last Sunderland at Vicarage Road on Sunday in Flores' last match as manager.