Sydney FC is expected to name a new coach within days after Pierre Littbarski refused to accept a cut price deal with the inaugural A-League champion.

Club CEO Tim Parker confirmed Littbarski had called him on Tuesday night to say he would not take up an offer - understood to be worth at least $250,000 less than his first season $700,000-package.

"He's decided to move on," said Parker, who confirmed a new coach could be named in a matter of days.

Parker would not elaborate on who the club had shortlisted but said there were three or four candidates and at least one of those was from overseas.

It is understood Central Coast mentor Lawrie McKinna, who surprised all by taking the Mariners through to the grand final against Sydney, is high on that list.

Negotiations with Littbarski - who did not return AAP's calls on Wednesday night - had been dragging on for months with the German initially angry at the offer that had been made to him.

But it was thought the two parties had come closer to an agreement in recent weeks and Parker said he thought after the initial stumbling blocks that Littbarski would stay on.

"It was a bit of a surprise when he turned round and basically withdrew from negotiations which as far as we were concerned were complete," Parker said.

"I suspect he's had a better offer somewhere else but we wish him well, he has been a terrific coach for us."

While winning the new A-League competition and qualifying for the rich World Club Championship, Sydney FC has had financial problems with reports the club had incurred debts between $3-6 million in the first season.

Last month Football Federation Australia chairman Frank Lowy substantially upped his stake in the cash-strapped club through his family company.

Parker said Sydney was simply in no position to offer Littbarski the same deal as he'd had.

"We just took stock ... at the end of the season when we evaluated our finances it was absolutely clear we could not afford to pay the coach what we had been paying him," said Parker, who admitted he expected Littbarski to walk away after the initial offer was tabled.

Parker said he was confident the club would get a "world class" coach even on a deal substantially less than what Littbarski had received.

"A lot of coaches have made their pile," he said.

"We now have the form on the board and Sydney is a very attractive place to come to so money isn't the only issue."

Marquee player Dwight Yorke - on a deal believed to be worth at least $900,000 a season - still has a year to run on his contract but there is speculation he will move on particularly if he impresses with Trinidad and Tobago at next month's World Cup.

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