A board meeting in January took the decision after two disappointing seasons following Lavicka's incredible double in his debut year in Sydney.

But the club insisted Lavicka was leaving with the utmost respect of players and staff - and Sydney's clubman of the year award would be named after him in his honour.

Lavicka will continue to coach Sydney FC for the rest of the season, starting with Sunday’s match against the Newcastle Jets at the Sydney Football Stadium.

But the search for his replacement starts immediately, with Central Coast Mariners coach Graham Arnold current favourite to take over if can be lured south from Gosford.

Sydney FC CEO Dirk Melton met Lavicka earlier this week to finalise Lavicka's exit who has been apart from his wife and two daughters for the past 12 months with the Czech's family in Prague.

“The Sydney FC Board has decided not to renew the contract of Vitezslav Lavicka beyond the 2011/12 Hyundai A-League season,” said Sydney FC CEO Dirk Melton.

“At the same time, Vitezslav decided he wants to return home to be with his family and continue his career in Europe.”

Lavicka joined Sydney FC at the beginning of the 2009/10 season, securing the Premiership and claiming a Grand Final victory in his first season in charge of the Sky Blues.

“I have enjoyed my time at Sydney FC and I want to continue to do my best and work hard with the players and staff at Sydney FC to be as successful as possible this season,” Lavicka said.

“But for next year I am living too far away from my family and they are very important.

“Since I came to Sydney I have been lucky to meet many good people, work with professional people - staff and players – and we managed to achieve great success in the first year. I will always have good memories of my time in Sydney, especially the Sydney FC Members and fans.”

Melton added: “Vitezslav as a man is beyond reproach.

“He is driven by values that make him a tremendous role model. He has incredible integrity, humility and honour and his warm smile, welcoming handshake and positive outlook have set a standard for everyone at the club.

“History will look favourably on his contribution to the club as the man who delivered our first double but it is also fitting that he should become part of Sydney FC history and heritage through the Clubman of the Year Award.

“We would like to wish Vitezslav and his family the best of luck for the future.”