Guardiola will depart at the end of the season as the most successful coach in the club's history having collected 13 trophies, including two Champions League triumphs, in his four years at the helm.

Tito Vilanova, assistant coach under Guardiola, will take over first-team duties at Camp Nou.

The former Barcelona captain announced his decision to president Sandro Rosell after lengthy discussions following Tuesday's shock Champions League semi-final exit at the hands of Chelsea.

The 41-year-old Guardiola, who made 479 appearances for the club as a player, decided not to renew his rolling one-year contract, which expires on June 30, and instead is believed to want a year out from the game.

Barcelona's 2-2 draw at the Nou Camp on Tuesday and 3-2 aggregate loss to Chelsea ensured the club would not win back-to-back Champions League titles.

The Chelsea upset followed Saturday's 2-1 home loss at home to La Liga leaders Real Madrid, which effectively ended hopes of a fourth consecutive domestic title for the Catalan giants.

Guardiola, who has overseen the rise to greatness of three-time world player of the year Lionel Messi, as well as cementing the reputation of Spanish internationals Xavi Hernandez and Andreas Iniesta, is widely regarded as the architect behind one of the greatest club side of all time.

Rosell expressed his 'eternal gratitude' for Guardiola for the 'happiness' he has given the club, saying 'I am sure we can overcome this new challenge'.

Guardiola, who has always insisted he will do 'whatever is best for the club' is understood to have told officials he 'could not go on' despite repeated enticements by Rosell.