Former assistant manager Kevin Cuthbert has decided to leave Raith Rovers.
The 36-year-old has turned down the offer of a coaching role under the new management team and is now in discussions with the club over a severance package.
Cuthbert was put in caretaker charge following Barry Smith's resignation last month, and was invited to apply for the manager's job, but following a 5-0 defeat to Ross County in the Irn-Bru Cup, and back-to-back league draws against Brechin and Montrose, he lost out to John McGlynn.
With Paul Smith returning as McGlynn's assistant, Cuthbert was giving the option of remaining at Stark's Park as a youth coach with first team responsibilities, but chairman Bill Clark confirmed that the former goalkeeper will not be returning.
"Kevin has turned down the coaching job that he was offered, and we're now at the stage of negotiating a financial package for him to leave the club," Clark told the Press.
"It's a pity because he's a good guy and we've certainly appreciated what he's done for us over the past two or three seasons as a player and coach.
"We offered him exactly the same terms as he was on, but he's decided he wants to go.
"He still had a viable job to do as a coach, and would have been part of a coaching team of three.
"It would have been mainly involved working with the reserve team, and developing the FEFA (Fife Elite Football Academy) under 18s that we've got registered to us.
"But he would have also been involved in the first team coaching as well, along with John and Paul.
"Part of his contract this year was to take the youths and reserves, so it was virtually the same contract, but he's decided he had to move on."
Cuthbert will not be replaced in the short term, with Paul Smith expected to combine his first team duties with a reserve team role until the end of the season.
"We are biding our time to see what the terrain is looking like next season," Clark added.
"If we're in the Championship that will make all the difference."