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Richard O'Kelly has quit as manager of Hereford United after turning down the chance to stay on at Edgar Street.

O'Kelly was put in charge in March for the final 12 games of the season in a bid to save the Bulls from the drop to the Blue Square Bet Premier.

Despite winning their last two matches, they still went down but Bulls chairman David Keyte made it clear that the board wanted him to remain in charge.

O'Kelly has instead told 91Èȱ¬ Hereford & Worcester his future lies elsewhere.

The hunt will now start for a new manager to take on the challenge of guiding United back into the Football League next season.

O'Kelly follows two members of his backroom team out of the door at Edgar Street as the club commence their predicted cost-cutting exercise following relegation.

Assistant manager Russell Hoult reached a settlement with the club as he had a year to run on his contract, while coach Richard Sneekes was told his deal would not be renewed when it runs out in June.

The departures now leave director of football Gary Peters and former manager Jamie Pitman, who was replaced by O'Kelly, in charge.

Chairman Keyte has predicted that relegation to the Conference will cost the club around £400,000 in reduced funding from the Football League.