Sven-Goran Eriksson is to step down as England head coach after the World Cup, it was revealed tonight.

The sensational announcement followed a day of intense negotiation between the Swede and Football Association chief executive Brian Barwick.

The FA confirmed tonight that once England have competed in the World Cup finals in June and July, Eriksson will part company with the national side, two years before his contract was due to expire.

It follows successive weekends of damaging revelations in the News of the World, who duped Eriksson and his advisers into believing an undercover reporter was a rich Arab sheikh who wanted to give the Swede a new job.

A statement on www.thefa.com said: "The FA can confirm that Sven-Goran Eriksson will leave his post as England head coach after the World Cup in Germany.

"FA chief executive Brian Barwick reached agreement with Sven and his advisors after discussions today."

Barwick said: "The FA and Sven felt it was important to clarify his future. This is for the benefit of everyone connected with English football, especially the fans.

"There has been so much speculation surrounding this matter in recent weeks and months, it was important to resolve it now. This is the right outcome and I would like to thank Sven and his advisors for their tremendous co-operation."

"As I have said before, our main objective is giving Sven and the England team the best chance of achieving success at the World Cup. Sven is definitely the man to lead us in Germany.

"Now is the time for everyone to get behind the team as we prepare for a tournament that presents us with a genuine chance of success."

Eriksson said: "I am happy that we have reached this agreement and can now continue our preparations for the World Cup. I know that I have the full support of the players and the FA and it is important to stress to everyone just how committed I am to achieving success this summer.

"I care passionately about this job and I want everyone to know that. I have always enjoyed the incredible support of the fans and I know how important they will be to us in Germany.

"This summer is the culmination of everything we have been working towards over the last five years. Let's go and win the World Cup."