Ex-Blackpool, Sunderland & West Ham man announces shock departure after winning promotion
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The 49-year-old took over at the ambitious North East outfit back in January 2022, losing in the Northern Premier League Premier Division play-offs in his first season in charge.
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Hide AdBut he went one better this term, guiding the Mariners to the league title with two league games to spare.
But following their defeat to Stafford Rangers on the final day of the season, the club confirmed Phillips had left by mutual consent.
The former forward said: "I feel that this is the right time for me to depart, for a number of reasons.
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Hide Ad“To be manager of South Shields has been an amazing experience and I’m very grateful for everything Geoff Thompson (chairman) has done during my time at the club.
“I’ve given my heart and soul to this club and I’m disappointed to leave, but I’ve been in football a long time and I know things can change very quickly.
“There are lots of different factors behind this mutual decision, but I’d like to place on record my thanks to everyone connected to the club and I wish whoever comes in next all the success in the world.
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Hide Ad“I was brought here to do a job and I did it and although I’d have loved to have taken it further, circumstances have changed and I’ll be supporting the club in the next phase of its journey from afar.”
The club added in a statement: “South Shields FC can confirm manager Kevin Phillips is to leave the club by mutual consent.
“Since promotion to National League North was confirmed earlier this month, discussions over the future direction of the club have been held between Kevin and chairman Geoff Thompson.
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Hide Ad“It has now been decided it is in the best interests of all parties to go their separate ways as the club continues on its road to a more sustainable model.
“Kevin departs on extremely good terms and with the best wishes of everyone connected to the club, as well as our thanks for his efforts since joining in January 2022.”