Mikel Arteta is now the favourite to become the next Arsenal manager, Sky Sports News understands.
Arsenal chief executive Ivan Gazidis wants Arsene Wenger's successor to fulfil a head coach role to fit into the club's new management structure.
Former Arsenal midfielder Arteta, who has been working as assistant coach under Pep Guardiola at Manchester City, has no management experience.
Arsenal want to take their time and are planning on making an appointment before the World Cup starts in a month.
Gazidis is working his way through a preferred list of candidates with head of football relations Raul Sanllehi and head of recruitment Sven Mislintat.
Other names being considered include Hoffenheim's Julian Nagelsmann, Monaco's Leonardo Jardim and Juventus head coach Massimiliano Allegri.
It is understood the new manager will be able to bring in his own backroom staff.
Also leaving with Wenger are coaches Boro Primorac, Neil Banfield, Gerry Peyton and Tony Colbert, and physio Colin Lewin.
Source: Sky Sports