Peter Reid has had his contract with the Thailand national team terminated by mutual consent in order to take up the position of assistant manager at Stoke.
Football Association of Thailand (FAT) chairman Worawi Makudi confirmed in a statement the decision was made after he spoke with Reid, who expressed his desire to return to England.
"Following recent speculation regarding the position of Peter Reid, Worawi Makudi, chairman of the Thai Football Association, contacted Mr Reid on September 8 to try and seek an explanation on the situation," said a statement on the FAT's official website. "After receiving a clear explanation, both parties agreed amicably to terminate the contract."
The former Sunderland boss signed a four-year contract with the South East Asians in September 2008 and had suggested continuing his role as Thailand coach alongside his work with the Potters, but Makudi rejected the proposal.
The statement added: "The reason that Mr Reid gave for terminating the contract and taking up the assistant manager position at Stoke City was his desire to help establish the foundations of a team that are competing in the English Premier League.
"Makudi understands Mr Reid's intentions and recognises that it is not suitable for him to undertake both positions at the same time.
"Makudi also added that the termination of the contract between the two parties has not created any conflicts."
Assistant coach Steve Darby will take temporary charge of the Thailand national team until a new coach is found.