Chris Coleman will take up the vacant managerial position at Sunderland in the next 48 hours.
The Black Cats had identified Coleman as their number one target following the departure of Simon Grayson over a fortnight ago.
Coleman's Wales future had been in doubt as he waited on assurances regarding members of his backroom staff.
An FAW meeting took place on Friday morning and Coleman has ended his six year tenure at the helm of the national side.
FAW chief executive Jonathan Ford said: “We are extremely disappointed to see Chris’ tenure as Wales manager come to an end.
“We wish Chris the very best of luck for the future as he returns to club management, a desire for which he has always been honest and open about.” He is yet to agree terms with the Black Cats but there are not expected to be any problems reaching an agreement.
Sources in Wales believe the 47-year-old could be unveiled by the end of the weekend and take charge for the trip to Aston Villa.