Heimir Hallgrimsson, who coached Iceland to their first World Cup campaign, decided to step down on Tuesday after being at the helm for seven years. Under Hallgirmsson, Iceland also qualified for their first European Championships in 2016.
Hallgrimsson was the co-coach with Lars Lagerback of Sweden two years ago, when Iceland reached the quarter-finals after beating England.
After Lagerback left, Hallgrimsson took Iceland, who recently became the least populous team to play in a World Cup.
Iceland drew with Argentina in its opening group game but failed to advance to the knockout stage following defeats to Nigeria and runners-up Croatia. Hallgrimsson is also a part-time dentist.