MELBOURNE (Reuters) -Graham Arnold has resigned as Australia coach in a decision he said was "best for the nation" following the Socceroos' poor start to Asia's third phase of World Cup qualifying.
Arnold's resignation follows heavy criticism from fans and pundits after a shock 1-0 loss to Bahrain on home soil and a 0-0 draw away against Asian soccer minnows Indonesia.
It ends his second, six-year-long stint in the role, having also been the Socceroos' interim coach in 2006-07.
Despite the shaky start in qualifying, the decision is a surprise, coming a week after Football Australia boss James Johnson strongly endorsed the 61-year-old to put the team back on track.
"I said after our game against Indonesia that I had some decisions to make, and after deep reflection, my gut has told me it’s time for change, both for myself and the programme," Arnold said in a FA statement.
"I've made the decision to resign based upon what’s best for the nation, the players and Football Australia.
"I’ve given absolutely everything I can to the role, and I am immensely proud of what has been achieved during my tenure."
Arnold advised FA earlier in the week of his decision and it was accepted by the board, FA said, adding that it was focused on appointing a replacement before the next round of World Cup qualifiers in October.
"While we respect his decision and are saddened to see Graham leave the national team set-up, this scenario is not uncommon in international football," said Johnson.
"We will act swiftly in appointing a new head coach to ensure continuity and stability ... and who can build upon the foundations which Graham leaves behind."
Arnold's departure marks the end of an era for a team that punched above its weight at the 2022 World Cup in Qatar despite wanting for world class players.
Fuelled largely by grit and determination, the Socceroos reached the last 16 and won two matches for the first time at a World Cup, making the players heroes and Arnold a household name in Australia.
The raspy-voiced coach known simply as "Arnie" tipped better things to come at the 2026 World Cup in North America.
But Qatar was to prove the high point for Arnold and his team, who have been a fading force in their region since winning the 2015 Asian Cup.
Under Arnold, the Socceroos disappointed at the 2019 and 2023 Asian Cups, exiting at the quarter-finals in each.
While sturdy in defence, Australia have long lacked quality playmakers and forwards, and Arnold was largely unable to solve their struggles to score.
It came to a head in recent weeks against Bahrain and Indonesia, with the world number 25 Socceroos embarrassed by the low-ranked and lightly-regarded nations.
Though the setbacks were hardly terminal for Australia's hopes of qualifying for the expanded, 48-team World Cup in 2026, impatient fans will agree with Arnold that it was time for "fresh leadership".
"The Socceroos have a bright future ahead, and I'm confident they will continue to excel," he said.
(Reporting by Ian Ransom in Melbourne; Editing by Jamie Freed, Shri Navaratnam and Kim Coghill)