Carlos Carvalhal leaves Swansea City with club looking for 'new direction' after relegation from the Premier League

The Portuguese had an immediate impact in south Wales but as his influence diminished so did the team's returns and they were relegated after losing to Stoke City

Carvalhal will not see his contract renewed (Getty)

Carlos Carvalhal will leave Swansea City after the Welsh club decided against renewing his contract.

The Portuguese, who had previously been at Sheffield Wednesday, took over in late December and immediately helped lift the club out of the relegation zone.

But his initial impact waned and despite spending in January, Swansea slumped back into the bottom three and saw their relegation confirmed by a final-day defeat to Stoke - even if it was ultimately sealed by their defeat by Southampton earlier that week.

Swans chairman Huw Jenkins said: “We’d like to put on record our thanks to Carlos for his enthusiasm, hard work and commitment since arriving at the club in December.

“Naturally, we are all disappointed with the club’s relegation from the Premier League, and following discussions with Carlos, we felt it was in the best interests of both parties that we move in a new direction.

“We will now be looking to appoint a new manager in readiness for the 2018-19 season.

“While there are already rumours linking us with several managers, it is vital that we identify the right person to take this team forward.”

Carvalhal will likely not struggle for offers but may have to take a job in the Championship, while Swansea will look to rebuild under new management. The club is looking closely at its management structure after failings in recruitment under Jason Levein and Steve Kaplan's ownership of the club proved ultimately costly in their relegation.