Nantes president Waldemar Kita announced head coach Claudio Ranieri will leave the Ligue 1 club at the end of the season.
Ranieri was only appointed in June on a two-year deal but the Italian is set to depart after just one campaign with Nantes 10th in the table heading into the final match of the season.
The 66-year-old, who guided Leicester City to the Premier League title in 2016, was linked to the vacant Italy post before Roberto Mancini was named coach on Monday.
"We can't hide anything. We had a meeting with the sponsors, he thanked everyone," Kita said.
"He has to be thanked for all the work he has done.
"It has not always been easy, there are regrets, but this is life and there is no anger."
Nantes were challenging for European qualification until they faded late in the season, with Ranieri's men a point adrift of ninth-placed Montpellier and two clear of Guingamp ahead of Strasbourg's visit on Saturday.