Sven-Goran Eriksson and the Football Association have accepted that Manchester United number two Steve McClaren will not be part of the England set-up next season.
United boss Sir Alex Ferguson snuffed out any hopes of McClaren maintaining his coaching role alongside Leicester boss Peter Taylor.
The Reds' agreement with the FA for McClaren's services ended with this week's World Cup qualifier in Albania.
FA chief executive Adam Crozier had planned talks with United chief executive Peter Kenyon with a view to extending the agreement - but he has accepted defeat.
A statement from the FA thanked United, especially Ferguson, for making McClaren available for the last four England matches.
Crozier said in the statement: "Steve McClaren has been a huge asset to the England team, and we would like to pass on our thanks to him for the very significant contribution he has made since November and wish him every success for the future."
England coach Eriksson added: "Steve has played a key role in allowing me to adapt to my new role with the England team.
"He has tremendous ability as a coach, and I am sure he will continue to enjoy sustained success with Manchester United.
"However, I would like to confirm that both Peter Taylor and Tord Grip will continue to work with me in the future to build on the good work we have already begun as a team."
Ferguson ruled out any possibility of an extension on a Sky Sports interview, insisting: "No, the agreement with England is that it finishes at the end of the season."
Asked in an interview on if he saw that situation changing, Ferguson replied: "No."