Blanc, 50, failed to guide PSG past the quarter-final of the Champions League last season and has paid the price, despite much success in Ligue 1. The former France coach won three league titles, and domestic trebles in the past two years, having been appointed three years ago.
PSG have reached the Champions League quarter-final stage in each of the last four seasons and were eliminated each time. Blanc signed a two-year contract extension in February but the Qatari-owned club confirmed his departure on Monday, with Sevilla’s Unai Emery linked with the post.
A statement read: “In a respectful atmosphere, negotiations were completed on 27 June. An agreement, by common accord, preserves the interests of both parties. Assistant coach Jean-Louis Gasset and head fitness trainer Philippe Lambert also leave the club as part of the agreement.
“As the club decides to head in a new direction for the management of the first team, it wishes to thank Laurent Blanc and expresses its gratitude for the work accomplished over the last three years by Laurent and his staff. During his three years at the club, Laurent Blanc won 11 trophies, including two national quadruples, and left a significant mark on the great history of Paris Saint-Germain.”
The PSG chief executive, Nasser Al-Khelaifi, added: “As we embark on a new chapter in the development of the club, I would like to thank Laurent Blanc for everything he has achieved over the last three years, both in terms of the playing style and results. I wish him the best for his future challenges.”
guardian.co.uk © Guardian News and Media Limited 2010