Gianfranco Zola has finally reaching a satisfactory financial settlement with West Ham.
The Italian was sacked after the end of the season despite keeping the Hammers in the Premier League.
The club have since appointed former Portsmouth boss Avram Grant as Zola's successor.
David Gold and David Sullivan took over the club in January and Zola was apparently on borrowed time.
"I thoroughly enjoyed my time at West Ham and I will always be very grateful to the club for giving me the opportunity to manage in the Barclays Premier League, especially at a club with such a great tradition in positive and attractive football," said Zola.
"I am looking forward to finding a new challenge in the game and returning to management as soon as possible.
"I would like to offer my sincere thanks to all of the players, staff and fans who supported me so well during my time at the club and I wish them every success for the future.
"I would also like to thank the League Managers Association for their support and hard work during the difficult period of my contract termination process."