McMahon led the club to LDV Trophy success this season

The former Liverpool midfielder, who had been in charge since January 2000, is leaving to pursue a fresh challenge.

"It is a sad day for me, but I am going to enjoy a break, recharge my batteries before looking forward to the future challenges," he told the club website.

Assistant coach Mark Seagraves has also left, with no decision yet taken on who will be in charge for Saturday's game.

We felt it was in the club's best interests for any change to be made with immediate effect Chairman Karl Oyston

During McMahon's reign, Blackpool were promoted to Division Two and won the LDV Vans Trophy twice.

Chairman Karl Oyston said: "I would like to place on record the gratitude for all Steve's efforts over the last four years.

"I feel the club have come a long way both on and off the field during this period and, following amicable discussions, we felt it was in the club's best interests for any change to be made with immediate effect.

"This will leave Steve free to pursue other options in the close season."

I have been proud to be part of the on going improvements at the club Steve McMahon

McMahon originally quit in January but withdrew his resignation six hours later.

He added: "It has been a fantastic four and a half years. We have enjoyed a lot of success both on and off the field.

"I have been proud to be part of the on going improvements at the club.

"During my time here, the supporters have been fantastic and are a credit to the club. Whilst they have that support I am sure they can go a long way."