The Sun says he has left his job with Maccabi Tel Aviv to pursue another management role in England.
The 56-year-old took up a role with the Israeli side back in August as Jordi Cruyff's coaching consultant.
But the former Middlesbrough, Newcastle, Derby and England boss confirmed he has quit the club in order to return to working on these shores.
McClaren said: “It's with much regret I have to return to England and leave my role at Maccabi Tel Aviv.
“I would like to thank so many people for making my time at Maccabi such a wonderful experience.
“The loyal, hard-working staff who work tirelessly behind the scenes.
“A great set of talented players who I loved working with and passionate fans who showed their support both at home in Netanya and across the country.
“It's been a pleasure to see Jordi and the team mature over the last few months, culminating with a Toto Cup final victory over Be'ersheva and the first trophy in three years.
“I wish Jordi, the staff, players and fans every success for the rest of the season and will surely come back to visit when Maccabi Tel Aviv win the Championship."