Head coach Roberto de Zerbi will leave Brighton after their final Premier League match of the season against Manchester United at home on Sunday.
Chairman Tony Bloom announced that the club and De Zerbi have “mutually agreed” on the Italian’s departure.
De Zerbi, 44, who previously coached Shakhtar Donetsk, joined the Seagulls in September 2022 on a four-year contract.
Under his leadership, Brighton achieved their highest-ever top-flight finish last season, securing sixth place and European qualification for the first time in the club’s history.
“Roberto has given us two excellent seasons of service in which he has led the club to new heights, not least our first ever European campaign which will live long in the memory of Albion fans,” said Bloom.
“We have mutually agreed to end Roberto’s contract at a time that suits both parties allowing us the earliest opportunity to plan for next season, and Roberto plenty of time to consider his next move and his future.”
BBC Sport understands that Kieran McKenna, who recently led Ipswich Town to Premier League promotion, is a potential candidate to replace De Zerbi at Brighton.
This season, Brighton achieved notable Europa League victories over Ajax, Marseille, and AEK Athens, finishing top of their group before being eliminated by Roma in the last 16.
Currently sitting 10th in the Premier League, Brighton cannot improve their position ahead of their final game on Sunday.
“I am sure our fans will give Roberto and his staff a wonderful and fully deserved send off at the Amex before, during and after tomorrow’s match,” Bloom added.
“In the meantime, I’d like to thank Roberto and his staff for all their hard work in the past two seasons. They all leave our club on good terms and with our very best wishes for the future.”
De Zerbi was appointed after Graham Potter left for Chelsea and Brighton have since sold the likes of Leandro Trossard, Alexis Mac Allister, Robert Sanchez and Moises Caicedo for a combined total of more than £200m.
“We have agreed to end my time at Brighton so that the club and I can continue to work in the way that suits each of us best, following our own ideas and visions, as well as our work and human values,” said De Zerbi.
“Leaving now provides me with time to take a break before deciding on my future plans.
“I am very sad to be leaving Brighton, but I am very proud of what my players and staff have achieved with the support of everyone at the club and our amazing fans in the past two historical seasons.”
Seven members of De Zerbi’s coaching staff will also leave but first-team coach Andrew Crofts and goalkeeper coach Stern will remain with the club.
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