Crystal Palace manager Oliver Glasner has confirmed he will leave the club when his contract expires at the end of the season.

The Austrian, 51, will leave as a Palace legend having led the Eagles to their first major trophy when they beat Manchester City to win the FA Cup last season.

That victory meant Glasner also took charge of Palace in this season's Conference League - their first experience of a major European competition - while they beat Liverpool on penalties in August's Community Shield.

Sources told BBC Sport Glasner was offered a new deal last summer, but he confirmed on Friday he had informed chairman Steve Parish he would not sign a new contract in October.

The news comes with Palace captain Marc Guehi closing in on a move to Manchester City, although Glasner insisted his exit had nothing to do with transfer decisions.

"A decision has already been taken, months ago. I had a meeting with Steve [Parish] in October, the international break," Glasner said.

"We had a very long talk, and I told him I will not sign a new contract. We agreed at the time it was the best to keep it between us. It's the best that we could do that and keep it confidential for three months.

"But now it's important to have clarity, and we had a very busy schedule so that's why we didn't want to talk about it. Steve and I want the best for Crystal Palace."

A deal between City and Palace for Guehi was reached on Thursday night with Glasner updated on developments.

Glasner and Guehi spoke at the Eagles' south London training centre on Friday morning when the defender's intention to join City was confirmed.

And in a dramatic morning at Palace's Beckenham HQ, Glasner confirmed to the squad in a private meeting just before noon his decision to step down in June.

Glasner was keen for Guehi to stay for the rest of this season, but has been powerless to prevent Palace from striking a deal with City for the England centre-half.

While Glasner decided his own future a few months ago, the Guehi deal is thought to have been the catalyst for him opting to make his announcement on Friday.

The former Eintracht Frankfurt manager replaced Roy Hodgson at Palace in February 2024, with the Eagles 15th in the Premier League.

He led them to a 10th-place finish before the Eagles came 12th in his first full season in charge and won the FA Cup.

Glasner's announcement comes with the south London club 13th in the league and on a nine-match winless run in all competitions, including a shock defeat by non-league Macclesfield in the FA Cup.

They finished 10th in the Conference League league phase and will face Bosnian club Zrinjski in the play-off round for a place in the last 16.

Despite Palace's poor recent form, Glasner remains highly regarded and reports have linked him with the Manchester United manager's job.

"I'm just looking for a new challenge," he said.

"I haven't spoken to any other club, I told the players that and promised them today I will give my best to give the best season in Crystal Palace history, the best points tally in history.

"We are now four points better off than we were at this stage of the season and we will do everything to bring another trophy back to Selhurst Park."