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Lars Lagerback has rejected an offer to retain his role as Nigeria coach, the National Football Federation confirmed on Friday.
NFF president Aminu Maigari said that Swedish tactician Lagerback does not wish to continue in the post, despite being offered a four-year deal.
Former Nigeria forward Samson Siasia is being lined up to replace the Swede.
"Lagerback told me he could not continue as the coach of the Super Eagles because he feared that he might not be able to pen a four-year deal that would keep him in Nigeria for that long," Maigari told Soccer Star.
"He thanked the NFF for the opportunity given to him to take the Eagles to the World Cup.
"He said the experience was worth it and that he would always remember Nigeria and her good people."
Maigari also said that Lagerback told him his family were a crucial factor in deciding not to extend his five-month contract.
Lagerback was at the helm of the Nigeria side that finished bottom of their first round group at the World Cup this summer, but the NFF agreed to offer the Swede a long-term deal due to the work he put in over a short period.
Maigari disclosed that Siasia will take over as the country's new coach on a four-year deal next month.
"We have had talks with Siasia. The talks have been fruitful and all things being equal, he will put pen to paper next month subject to negotiations," he said.
"Siasia is the coach Nigerians want and we shall give him all the support to succeed in this new job."
Siasia, who is currently in charge of Nigerian club Heartland FC, led the national team to the final of both the 2005 FIFA Under-20 World Cup as well as the 2008 Olympics.
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West Brom forward Peter Odemwingie has been left out of the Nigeria preliminary squad for the Africa Cup of Nations.
Strikers Peter Odemwingie and Obafemi Martins have been left out of Nigeria's squad for the Africa Cup of Nations.
Shola Ameobi understands Newcastle's fears over his Nigeria call-up, but says he could not ignore the opportunity.
West Brom striker Peter Odemwingie insists he has not retired from international football with Nigeria.
Newcastle could lose a striker to the Africa Cup of Nations after all, with Nigeria monitoring Shola Ameobi.