KEVIN Keegan released his resignation statement through the League Managers' Association, which has been advising him since he walked out of St James's Park on Monday.
It said: "Over the past few days, the board of directors of Newcastle United Football Club and Kevin Keegan have been in detailed discussions.
"The letter which Kevin received today from managing director Derek Llambias has failed to resolve the matters in issue between him and the club and accordingly he feels he has no alternative other than to resign."
Kevin Keegan said: "I've been working desperately hard to find a way forward with the directors, but sadly that has not proved possible.
"It's my opinion that a manager must have the right to manage and that clubs should not impose upon any manager any player that he does not want.
"It remains my fervent wish to see Newcastle United do well in the future and I feel incredibly sorry for the players, staff and most importantly the supporters.
"I have been left with no choice other than to leave."
LMA chief executive Richard Bevan said: "The LMA has been supporting Kevin during a very difficult period.
"We share his great disappointment and frustration that the situation could not be resolved."
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