Wolves boss Julen Lopetegui has left the club, with ex-Bournemouth manager Gary O’Neil set to replace him.
The club have known for some time that Lopetegui, 56, wanted to leave.
Wolves said both parties had “accepted their differences of opinion on certain issues and agreed that an amicable end to his contract was the best solution”.
Wolves announced the Spaniard’s departure three days before the Premier League season begins – they face Manchester United on Monday.
The club said talks had been “ongoing in recent weeks, held with the utmost respect and cordiality” to give the club time to work on finding a successor and allow Lopetegui and his staff to get the squad in good shape for the new season.
BBC Sport’s Simon Stone understands the agreement to part ways was sealed after the friendly with Celtic last month, but that Lopetegui agreed to continue to allow time to find a replacement.
Several candidates were considered as Lopetegui’s replacement but 40-year-old O’Neil impressed the hierarchy and is expected to be confirmed as the new manager on Wednesday.
O’Neil guided Bournemouth to Premier League safety last season with a 15th-place finish but was sacked in June and replaced by Andoni Iraola, who led Spanish side Rayo Vallecano to 11th in La Liga last season.
Spanish journalist Guillem Balague said Lopetegui was not allowed to sign any players this summer, after believing the squad would be strengthened.
Former Spain boss Lopetegui took over in November when Wolves were bottom of the Premier League table before guiding them to 13th place, but the club’s financial situation led to speculation earlier this summer that he could leave.
